Question No 28 Chapter No 8 - T.S. Grewal 11 Class

Question No 28 Chapter No 8

Table of Contents

Solution of Question No 28 Chapter No 8: –

Explanation of All Transactions with images: –

Journalise the following transactions:

2018
Apr-01	Paid into Bank Rs 21,000 for opening a Current Account.
Apr-02	Withdrew for private expenses Rs 5,000.
Apr-04	Withdrew from bank Rs 3,000
Apr-05	Place on Fixed Deposited Account at Bank by transfer from Current Account Rs 5,000.
Apr-10	Received a cheque from Shiv & Co. to whom goods sold for Rs 3,000 last year. Allowed him 2% Discount.
Apr-14	Shiv & Co.’s cheque deposited into bank.
Apr-16	Shiv & Co.’s cheque dishonored (Bank charges Rs 10)
Apr-17	Shiv & Co. settled his account by means of a cheque for Rs 3,000, 40 being interest charged.

Solution of Question No 28 Chapter No 8: –

In the Books of ______________

Date	Particulars		L.F.	Debit	Credit
2018
April 1	Bank A/c	Dr.		21,000
	To Cash A/c				21,000
	(Being opening a Current Account.)

April 2	Drawing A/c	Dr.		5,000
	To Cash A/c				5,000
	(Being withdrew for private expenses)

April 4	Cash A/c	Dr.		3,000
	To Bank A/c				3,000
	(Being withdrew from bank)

April 5	Fixed Deposit A/c	Dr.		5,000
	To Bank A/c				5,000
	(Being withdrew from bank)

April 10	Cheque in hand A/c	Dr.		2,940
	Discount Allowed A/c	Dr.		60
	To Shiv & Co. A/c				3,000
	(Being amount received from Shiv & Co. and allowed discount)

April 14	Bank A/c	Dr.		2,940
	To Cheque in hand A/c				2,940
	(Being Cheque Deposited into bank)

April 16	Shiv & Co. A/c	Dr.		2,950
	To Bank A/c				2,950
	(Being Shiv & Co. cheque dishonored and bank deducted charge Rs 10 which is recoverable from the Shiv & Co., So, Debited to their account.)

April 17	Bank A/c	Dr.		3,000
	To Shiv & Co. A/c				2,950
	To Interest received A/c				50
	(Being Shiv & Co. issued fresh cheque with Rs 50 as interest)

Explanation of All Transactions with images: –

This is not a part of the solution, So you don’t have to write it in the exam. So, why we explained if it is not needed. Because This explanation will help you to understand all transactions with logic and you don’t need to remember all the transactions but just understand and remember the logic use behind it.

Transaction No. 1

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Bank	Assets	Real Account	Cash deposited into bank	Cash Comes In	Debit
Cash	Assets	Real Account	Cash paid by business	Cash Goes Out	Credit

Transaction No. 2

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Drawing (owner)	Person	Personal Account	Owner received cash	He is Receiver	Debit
Cash	Assets	Real Account	Cash withdrawal for private use	Cash Goes Out	Credit

Transaction No. 3

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Cash	Assets	Real Account	Cash received by business	Cash Comes In	Debit
Bank	Assets	Real Account	Cash withdrawal from Bank	Cash Goes Out	Credit

Transaction No. 4

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Bank Fixed Deposit	Assets	Real Account	Business Received FD	Asset (FD) Comes In	Debit
Bank	Assets	Real Account	Cash paid by business	Cash Goes Out	Credit

Transaction No. 5

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Cheque in hand	Assets	Real Account	Cheque received	Cheque Comes In	Debit
Discount Allowed	Expenses	Nominal Account	Discount allowed	All Expenses and losses	Debit
Shiv & Co.	Personal	Personal Account	they are paying cash	They are Giver	Credit

Transaction No. 6

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Bank	Assets	Real Account	Cash deposited into bank	Cash Comes In	Debit
Cheque in Hand	Assets	Real Account	Cheque Deposited into bank	Cheque Goes Out	Credit

Transaction No. 7

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Shiv & Co.	Personal	Personal Account	they are receiving Cheque Bank	They are Receiver	Debit
Bank	Assets	Real Account	Cheque returned from Bank	Cheque Goes Out	Credit

Transaction No. 8

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Cheque in hand	Assets	Real Account	Cheque received	Cheque Comes In	Debit
Shiv & Co.	Personal	Personal Account	they are paying cash	They are Giver	Credit
Interest Received	Income	Nominal Account	Interest charges	All Income and Gains	Credit

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Question No 28 Chapter No 8 – T.S. Grewal 11 Class

Solution of Question No 28 Chapter No 8: –

Explanation of All Transactions with images: –

Transaction No. 1

Transaction No. 2

Transaction No. 3

Transaction No. 4

Transaction No. 5

Transaction No. 6

Transaction No. 7

Transaction No. 8

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