Question No 6 Chapter No 8 - T.S. Grewal 11 Class

Question No 6 Chapter No 8

Table of Contents

Solution of Question No 6 Chapter No 8: –

Explanation of All Transactions with images: –

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

Journalise the following transactions:

(i)	Goods worth Rs 500 given as charity.
(ii)	Sold goods to Mayank of Rs 1,00,000, payable 25% by cheque at the time of sale and balance after 30 days of sale.
(iii)	Received Rs 975 from Harikrishna in full settlement of his account Rs 1,000.
(iv)	Received a first and final dividend of 60 paise in a rupee from the official receiver of Rajan, who owed us Rs 1,000.
(v)	Charged depreciation on plant Rs 1,000.
(vi)	Charged interest on drawings Rs 1,500
(vii)	Sold goods costing Rs 40,000 to Anil for cash at a profit of 25% on cost less 20% trade discount and paid cartage Rs 100, which is not to be charged from customer.

Solution of Question No 6 Chapter No 8: –

Date	Particulars		L.F.	Debit	Credit
(i)	Charity A/c	Dr.		500
	To Purchase A/c				500
	(Being goods given as charity.)

(ii)	Mayank A/c	Dr.		75,000
	Bank A/c	Dr.		25,000
	To Sales A/c				1,00,000
	(Being goods sold to Mayank and 25% payment received with a cheque.)

(iii)	Cash A/c	Dr.		975
	Discount Allowed A/c	Dr.		25
	To Hari Krishna A/c				1,000
	(Being cash received from Hari Krishna with the full settlement.)

(iv)	Cash A/c	Dr.		600
	Bad debts A/c	Dr.		400
	To Rajan A/c				1,000
	(Being rent due to landlord but not paid.)

(v)	Depreciation A/c	Dr.		1,000
	To Plant A/c				1,000
	(Being Depreciation charged on Plant.)

(vi)	Capital A/c	Dr.		1,500
	To Interest on Drawing A/c				1,500
	(Being interest charges on interest on drawing.)

(vii)	Anil A/c	Dr.		40,000
	To Sales A/c				40,000
	(Being goods sold to Anil at 20% trade discount)

	Cartage A/c	Dr.		100
	To Cash A/c				100
	(Beingcartage paid in cash on above sale.)

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
Charity	Expenses	Nominal Account	50% Payment received in cash	Cash comes in	Debit
Purchase (goods)	Assets	Real Account	Goods given as charity	Goods goes out	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
Sales a/c (Goods)	Assets	Real	Goods giving by Business	Goods Goes out	Credit
Bank	Artificial Person	Personal	Payment received by cheque	Bank is receiver	Debit
Mayank	Person	Personal	Goods received	Mayank is receiver	Debit

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. Hari Krishna	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
Cash	Assets	Real Account	Payment received in cash	Cash comes in	Debit
Bad debt	Loss	Nominal Account	Loss for not receiving due amount	All Expenses and Losses	Debit
Mr. Rajan	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
Depreciation	Loss	Nominal	Value of assets diminished	All Expenses and Losses	Debit
Plant	Assets	Real	Assets decreasing	Goes out	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
Owner	Person	Personal A/c	The owner is using an amount of Interest for his own purpose not paying it to the business.	Owner is indirectly receiving cash	Debit
Interest on Drawing	Income	Nominal A/c	Interest earned by Business	All Income and gains	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
Sales a/c (Goods)	Assets	Real Account	Goods giving by Business	Goods Go out	Credit
Anil a/c	Person	Personal Account	Goods received	Pawan is receiver	Debit

Transaction No. 7b Question No.6 - Chapter No.8 - T.S. Grewal +1 Book 2019 — Transaction No. 7b Question No.6 – 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
Cartage	Expenses	Nominal Account	Expenses Incurred	All Exp. or Loss	Debit
Cash	Assets	Real Account	Cash paid by a business	Cash goes out	Credit