# 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

 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

 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

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

Chapter No. 1 – Introduction to Accounting

Chapter No. 2 – Basic Accounting Terms

Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)

Chapter No. 4 – Bases of Accounting

Chapter No. 5 – Accounting Equation

Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit

Goods and Services Tax(GST)

Chapter No. 7 – Origin of Transactions –  Source Documents and Preparation of Vouchers

Chapter No. 8 – Journal

Chapter No. 9 – Ledger

Chapter No. 10 – Special Purpose Books I – Cash Book

Chapter No. 11 – Special Purpose Books II – Other Books

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Trial Balance

Chapter No. 14 – Depreciation

Chapter No. 15 – Provisions and Reserves

Chapter No. 16 – Accounting for Bills of Exchange

Chapter No. 17 – Rectification of Errors

Chapter No. 18 – Financial Statements of Sole Proprietorship

Chapter No. 19 – Adjustments in preparation of Financial Statements

Chapter No. 20 – Accounts from incomplete Records – Single Entry System

Chapter No. 21 – Computers in Accounting

Chapter No. 22 – Accounting Software – Tally

T.S. Grewal’s Double Entry Book Keeping