Question No 3 Chapter No 10 – T.S. Grewal 11 Class

Question No. 3 - Chapter No.10 - T.S. Grewal +1 Book 2019

Question No 3 Chapter No 10

Enter the following transactions of Mr Ripinder, Delhi in a Single Column Cash Book and Balance it:

2018   Rs.
Apr.1 Sri Gopal commenced business introducing cash Rs. 60,000 and Rs. 1,50,000 by taking a loan from the Allahabad Bank.   
Apr.4 Purchased following assets for business: Computer Rs 16,000; Furniture Rs 18,500 and Machinery Rs 32,000 plus CGST and SGST @ 6% each, paid by cheque  
Apr.6 Purchased goods of Rs 40,000 plus CGST and SGST @ 6% each from Bhushan, Amritsar, Half of the value paid in cash  
Apr.8 Paid wages for installation of Machinery 4,000
Apr.12 Computer repair charges Rs 1,900 paid along with CGST and SGST @ 6% each  
Apr.15 Paid wages 15,000
  Purchased Postage Stamps  150
  Paid for stationery of Rs 2,700 along with CGST and SGST @ 6% each   
Apr.19 Sold for cash half the goods purchased from Bhushan to Anil Krishna at a profit of 25% and allowed him Trade Discount of 5%. Charged CGST and SGST @ 6% each  
Apr.24 Payment to a carpenter for repairs to private property 350
Apr.26 Paid for medical expenses of Smt. Gopal 1,800
Apr.30 Paid for shop rent Rs 2,000 along with CGST and SGST @ 6% each  

The solution of Question No 3 Chapter No 10: – 

In the Books of Mr Suresh, Delhi

Dr. Cash Book Cr.
Date Particulars
L.F. Amount Date Particulars
L.F. Amount
2018       2018      
Apr. 1 To Capital A/c*    60,000 Apr. 6 By Purchase A/c*   20,000
Apr. 19 To Sale A/c*   23,750 Apr. 6 By Input CGST  A/c   1,200
Apr. 19 To Output CGST A/c   1,425 Apr. 6 By Input SGST A/c   1,200
Apr. 19 To Output SGST A/c   1,425 Apr. 8 By Machinery A/c   4,000
        Apr. 12 By Computer Repair A/c*   1,900
        Apr. 12 By Input CGST  A/c   114
        Apr. 12 By Input SGST A/c   114
        Apr. 15 By Wages A/c   15,000
        Apr. 15 By Postage & Stamps A/c   150
        Apr. 15 By Stationery A/c*   2,700
        Apr. 15 By Input CGST  A/c   162
        Apr. 15 By Input SGST A/c   162
        Apr. 24 By Drawing A/c*   350
        Apr. 26 By Drawing A/c*   1,800
        Apr. 30 By Rent A/c*   2,000
        Apr. 30 By Input CGST  A/c   120
        Apr. 30 By Input SGST A/c   120
        Apr. 30 By Balance C/d   35,508
               
      86,600       86,600

All transactions which are highlighted with (*) are explained as following as follows: –

*Apr.1 Sri Gopal commenced business introducing cash Rs. 60,000 and Rs. 1,50,000 by taking a loan from the Allahabad Bank.

The above transaction will be not be recorded in this type of cash book because Sri Gopal Taking a loan of Rs 1,50,000 from Allahabad bank which will be credited in a bank account. But we are preparing a simple cash book which means cash book with only cash column, not a cash book with bank column. This transaction is related to Bank column.

*Apr.4 Purchased following assets for business: Computer Rs 16,000; Furniture Rs 18,500 and Machinery Rs 32,000 plus CGST and SGST @ 6% each, paid by cheque.

The above transaction will be not be recorded in this type of cash book because payment is made by cheque so this transaction is also related to Bank column.

*Apr.6 Purchased goods of Rs 40,000 plus CGST and SGST @ 6% each from Bhushan, Amritsar, Half of the value paid in cash

Only half payment is made in cash, So the treatment of half amount will be recorded in the cash book. The calculation is shown as follows: –
Amount of cash paid for goods: –
40,000* ½ = 20,000/-
Amount of CGST and SGST @ 6% each of the half amount.
20,000 * 6% = 1,200/- each

*Apr.12 Computer repair charges Rs 1,900 paid along with CGST and SGST @ 6% each

The calculation of Amount of CGST and SGST @ 6% each.
1,900 * 6% = 114/- each

*Apr.15 Paid for stationery of Rs 2,700 along with CGST and SGST @ 6% each

The calculation of Amount of CGST and SGST @ 6% each
2,700 * 6% = 162/- each

*Apr.19 Sold for cash half the goods purchased from Bhushan to Anil Krishna at a profit of 25% and allowed him Trade Discount of 5%. Charged CGST and SGST @ 6% each

The calculation of Sale price of  half of the number of goods which were purchased from Bhushan on 6 April 2018

Total amount * ½
40,000* ½ = 20,000

Add Profit on It @ 25%
Gross Sale Price = Purchase Price + Profit
20,000+ (20,000 * 25%)
20,000 + 5,000
Gross Sales Price = 25,000/-

Less Trade Discount @ 5% on Gross Sale Price
25,000 * 5%
= 1,250/-

Net Sale Price = Gross Sale Price – Discount
= 25,000 – 1250
= 23,750

The calculation of Amount of CGST and SGST @ 6% each
23,750 * 6% = 1,425/- each

*Apr.24 Payment to a carpenter for repairs to private property 350.

The above payment made for the repair of private property of the owner, So it will be treated as Drawing.

*Apr.26 Paid for medical expenses of Smt. Gopal

The above payment made for medical expenses of Smt. Gopal, and Smt. Gopal is the wife of Mr Sri Gopal (Owner), So it will be treated as Drawing.

*Apr.30 Paid for shop rent Rs 2,000 along with CGST and SGST @ 6% each

The calculation of Amount of CGST and SGST @ 6% each.
2,000 * 6% = 120/- each

To understand more about cash book please check out following links: –

Cash Book | Types of Cash Book | Subsidiary Books

Single Column Cash Book | Explained with Example

Double Column Cash Book | Explained with Example

Triple Column Cash Book | Explained with Example

Petty Cash Book | Example | Subsidiary Books

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Also, Check out previous Chapters: –

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 3 Chapter No 10 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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