Question No 4 Chapter No 8 - T.S. Grewal 11 Class

Question No 4 Chapter No 8

Journalise the following transactions in the books of Bhushan Agencies :

(i)	Received from Bharat cash Rs 20,000, allowed his discount of Rs 500.
(ii)	Received from Vikas Rs 35,000 by cheque, allowed him a discount of Rs 750.
(iii)	Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash.
(iv)	Received from Amrit Rs 50,000 by cheque on account against dues of Rs 60,000.
(v)	Paid cash Rs 40,000 to Suresh, availed discount 2%.
(vi)	Paid by cheque Rs 25,000 to Mehar and settled her dues of Rs 26,000.
(vii)	Paid Rs 25,000 to Yogesh by cheque on account.
(viii)	Purchased goods Costing Rs 1,00,000 Against cheque and availed discount of 3%.
(ix)	Purchased goods costing Rs 60,000 from Akash & Co., paid 50% immediately availing 3% discount.
(x)	Sold goods of Rs 30,000 against cheque allowing 2% discount.
(xi)	Sold goods of Rs 60,000 to Vimal received 50% of the due amount allowing a 2% discount.

Solution of Question No 4 Chapter No 8:-

Note: – Always remember that:
“You have to create a new account discount allowed/received to record the cash discount. Because cash discount always recorded in the books.”

Table of Contents

Solution of Question No 4 Chapter No 8:-

Explanation of All Transactions with images: –

T.S. Grewal’s Double Entry Book Keeping (Class +1) – Solution

In the books of Bhushan Agencies

Date	Particulars		L.F.	Debit	Credit
(i)	Cash A/c	Dr.		20,000
	Discount Allowed A/c	Dr.		500
	To Bharat A/c				20,500
	(Being amount received from Bharat and allowed him a discount.)

(ii)	Bank A/c	Dr.		35,000
	Discount Allowed A/c	Dr.		750
	To Vikas A/c				35,750
	(Being amount received from Vikas and allowed him a discount.)

(iii)	Cash A/c	Dr.		38,000
	Discount Allowed A/c	Dr.		2,000
	To Bharat A/c				40,000
	(Being amount received from Akhil and allowed him a discount.)

(iv)	Bank A/c	Dr.		50,000
	To Amrit A/c				50,000
	(Being amount received from Amrit and allowed him a discount.)

(v)	Suresh A/c	Dr.		40,816
	To Cash A/c				40,000
	To Discount Received A/c				816
	(Being amount paid to Suresh and received a discount.)

(vi)	Mehar A/c	Dr.		26,000
	To Bank A/c				25,000
	To Discount Received A/c				1,000
	(Being amount paid to Mehar and received a discount.)

(vii)	Yogesh A/c	Dr.		25,000
	To Bank A/c				25,000
	(Being amount paid to Yogesh with cheque)

(viii)	Purchase A/c	Dr.		1,00,000
	To Bank A/c				97,000
	To Discount Received A/c				3,000
	(Being goods purchased for cash.)

(ix)	Purchase A/c	Dr.		60,000
	To Akash & Co. A/c				30,000
	To Bank A/c				29,100
	To Discount Received A/c				900
	(Being goods purchased from Akash & CO. and received discount.)

(x)	Bank A/c	Dr.		29,400
	Discount Allowed A/c	Dr.		600
	To Sales A/c				30,000
	(Being goods sold against cheque.)

(xi)	Cash A/c	Dr.		29,400
	Discount Allowed A/c	Dr.		600
	Vimal A/c	Dr.		30,000
	To Sales A/c				60,000
	(Being goods sold to Vimal and allow him to discount @2%.)

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
Cash	Assets	Real Account	Payment received in cash	Cash comes in	Debit
Discount allowed	Loss	Nominal Account	Loss for receiving payment early	All Expenses and Losses	Debit
Mr. Bharat	Person	Personal Account	Making payment	Giver	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
Bank	Artificial Person	Personal Account	receiving payment	Bank is receiver	Debit
Discount allowed	Loss	Nominal Account	Loss for receiving payment early	All Expenses and Losses	Debit
Mr. Vikas	Person	Personal Account	Making payment	Giver	Credit

Transaction No. 3

Name of Account	Type of Account	The rule which will Applicable	What happens in the transaction	Rule applied	According to Rule, It will be
Cash	Assets	Real Account	Payment received in cash	Cash comes in	Debit
Discount allowed	Loss	Nominal Account	Loss for receiving payment early	All Expenses and Losses	Debit
Mr. Akhil	Person	Personal Account	Making payment	Giver	Credit

Transaction No. 4

Name of Account	Type of Account	The rule which will Applicable	What happens in the transaction	Rule applied	According to Rule It will be
Bank	Artificial Person	Personal Account	receiving payment	Bank is receiver	Debit
Discount allowed	Loss	Nominal Account	Loss for receiving payment early	All Expenses and Losses	Debit
Mr. Amrit	Person	Personal Account	Making payment	Giver	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
Mr. Suresh	Person	Personal Account	Receiving payment	Receiver	Debit
Cash	Assets	Real Account	Payment made to Suresh in cash	Cash Goes out	Credit
Discount Received	Gain	Nominal Account	Gain availed on payment	All Expenses and Losses	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
Mr. Mehar	Person	Personal Account	Receiving payment	Receiver	Debit
Bank	Artificial Person	Personal Account	making payment	Bank is giver	Credit
Discount Received	Gain	Nominal Account	Gain availed on payment	All Expenses and Losses	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
Mr. Yogesh	Person	Personal Account	Receiving payment	Receiver	Debit
Bank	Artificial Person	Personal Account	making payment	Bank is giver	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
Purchase (Goods)	Assets	Real Account	Goods received by business	Goods comes in	Debit
Bank	Artificial Person	Personal Account	Giving cash to seller	Giver	Credit
Discount Received	Gain	Nominal Account	Gain availed on payment	All Expenses and Losses	Credit

Transaction No. 9

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Purchase (Goods)	Assets	Real Account	Goods received by business	Goods comes in	Debit
Cash	Assets	Real Account	50% Payment made in cash	Cash goes out	Credit
Discount Received	Gain	Nominal Account	Gain availed on payment	All Expenses and Losses	Credit
Akash & Co.	A/Person	Personal Account	Selling his Goods	Giver	Credit

Transaction No. 10

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Bank	Artificial Person	Personal Account	receiving payment	Bank is receiver	Debit
Discount allowed	Loss	Nominal Account	Loss for receiving payment early	All Expenses and Losses	Debit
Sale (Goods)	Assets	Real Account	Goods sold by business	Goods goes out	Credit

Transaction No. 11

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	50% Payment received in cash	Cash comes in	Debit
Discount allowed	Loss	Nominal Account	Loss for receiving payment early	All Expenses and Losses	Debit
Vimal	Person	Personal Account	Selling his Goods(50% unpaid)	Giver	Credit
Sale (Goods)	Assets	Real Account	Goods sold by business	Goods goes out	Credit