# 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 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 due amount allowing 2% discount.

#### Solution of Question No 4 Chapter No 8: –

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

In the books of Bhushan Agencies

### 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 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. Akhil Person Personal Account Making payment Giver 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 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