Question No 5 Chapter No 8 - T.S. Grewal 11 Class

Question No 5 Chapter No 8

Journalise the following transactions:

(i)	Shyam became insolvent. A first and final compensation of 75 paise in a rupee was received from his official receiver. He owed us 10,000.
(ii)	Received cash for a bad debt written off last year 5,000
(iii)	Rent due to landlord 8,000
(iv)	Salaries due to clerks 10,000
(v)	Placed an order with Rakesh Mohan for the supply of goods of the list price of Rs 1,00,000. In this connection. Raman paid 10% of the list price as an advance by cheque.

Solution of Question No 5 Chapter No 8: –

Date	Particulars		L.F.	Debit	Credit
(i)	Cash A/c	Dr.		7,500
	Bad Debts A/c	Dr.		2,500
	To Shyam A/c				10,000
	(Being first and last compensation received from Shyam.)

(ii)	Cash A/c			5,000
	To Bad Debts Recovered A/c				5,000
	(Being Received cash for a bad debt written off last year.)

(iii)	Rent A/c			8,000
	To outstanding Rent A/c				8,000
	(Being rent due to landlord but not paid.)

(iv)	Salary A/c			10,000
	To outstanding Salary A/c				10,000
	(Being salary due but not paid.)

(v)	Advance to Rakesh Mohan A/c			10,000
	To Cash A/c				10,000
	(Being advance paid to the supplier against the purchase order.)

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

Shyam became insolvent. A first and final compensation of 75 paise in a rupee was received from his official receiver. He owed us 10,000. -Transaction No. 1 Question No.5 - Chapter No.8 - T.S. Grewal +1 Book 2019 — Shyam became insolvent. A first and final compensation of 75 paise in a rupee was received from his official receiver. He owed us 10,000. -Transaction No. 1 Question No.5 – 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
Bad debt	Loss	Nominal Account	Loss for not receiving a due amount	All Expenses and Losses	Debit
Mr. Shyam	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
Cash	Assets	Real Account	Payment received in cash	Cash comes in	Debit
Bad debts recovered	Gain	Nominal Account	Loss of last year recovered	All Income and gains	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
Rent A/c	Loss	Nominal Account	Expenses incurred	All Expenses and Losses	Debit
Outstanding Rent A/c	Representative Person	Personal Account	Actually, landlord is giving his cash to the business.	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
Salary A/c	Loss	Nominal Account	Expenses incurred	All Expenses and Losses	Debit
Outstanding Salary A/c	Representative Persons	Personal Account	Actually, Clerks(employees) are giving their cash to the business.	They are Giver	Credit

Transaction No. 5

Placed an order with Rakesh Mohan for the supply of goods of the list price of Rs 1,00,000. In this connection. Raman paid 10% of the list price as an advance by cheque. - Transaction No. 5 Question No.5 - Chapter No.8 - T.S. Grewal +1 Book 2019 — Placed an order with Rakesh Mohan for the supply of goods of the list price of Rs 1,00,000. In this connection. Raman paid 10% of the list price as an advance by cheque. – Transaction No. 5 Question No.5 – 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
Advance to Rakesh Mohan	Representative Person	Personal Account	Receiving payment	Rakesh Mohan is Receiver	Debit
Bank	Artificial Person	Personal Account	making payment	Bank is giver	Credit