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

Question No. 4 - Chapter No.8 - T.S. Grewal +1 Book 2019

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

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
Discount Allowed A/c Dr. 10,000
              To Amrit A/c 60,000
(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 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

Transaction No. 1 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Received from Bharat cash Rs 20,000, allowed his discount of Rs 500.
– Transaction No. 1 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 2 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Received from Vikas Rs 35,000 by cheque, allowed him discount of Rs 750.
– Transaction No. 2 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 3 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Received from Akhil Rs 38,000 in settlement of his dues of Rs 40,000 in cash. – Transaction No. 3 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 4 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Received from Amrit Rs 50,000 by cheque on account against dues of Rs 60,000.
– Transaction No. 4 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 5 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Paid cash Rs 40,000 to Suresh, availed discount 2%. – Transaction No. 5 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 6 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Paid by cheque Rs 25,000 to Mehar and settled her dues of Rs 26,000 – Transaction No. 6 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 7 Question No.7 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Paid Rs 25,000 to Yogesh by cheque on account. – Transaction No. 7 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 8 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Purchased goods Costing Rs 1,00,000 Against cheque and availed discount of 3%. – Transaction No. 8 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 9 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Purchased goods costing Rs 60,000 from Akash & Co., paid 50% immediately availing 3% discount.- Transaction No. 9 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 10 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Sold goods of Rs 30,000 against cheque allowing 2% discount.
– Transaction No. 10 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 11 Question No.4 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 4 Chapter No 8 - T.S. Grewal 11 Class
Sold goods of Rs 60,000 to Vimal received 50% of due amount allowing 2% discount. – Transaction No. 11 Question No.4 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

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