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Question No 7 Chapter No 8 – T.S. Grewal 11 Class

Question No. 7 - Chapter No.8 - T.S. Grewal +1 Book 2019
Question No. 7 - Chapter No.8 - T.S. Grewal +1 Book 2019

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Question No 7 Chapter No 8

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Journalise the following transactions:

(a)Shyam became insolvent. A first and final compensation of 75 paise in a rupee was received from his official receiver. He owed a debt of 50,000
(b)Received cash for a bad debt written off last year 25,000
(c)Rent due to landlord 40,000
(d)Depreciation on office furniture 5,000
(e)Salaries due to staff 50,000
(f)Paid Income tax 1,50,000
(g)Received commission Rs 25,000, half of which in in advance

Solution of Question No 7 Chapter No 8: –

Date  Particulars
L.F.DebitCredit
(a)Cash A/cDr. 37,500 
 Bad Debts A/cDr. 12,500 
            To Shyam A/c  50,000
 (Being first and last compensation received from Shyam.)   
      
(b)Cash A/cDr. 25,000 
           To Bad Debts Recovered A/c   25,000
 (Being Received cash for a bad debt written off last year.)   
      
(c)Rent A/cDr. 40,000 
           To outstanding Rent A/c   40,000
 (Being rent due to landlord but not paid.)   
      
(d)Depreciation A/cDr. 5,000 
           To Office Furniture A/c   5,000
 (Being Depreciation charged on Office furniture.)   
      
(e)Salary A/cDr. 50,000 
           To outstanding Salary A/c   50,000
 (Being salary due but not paid.)   
      
(f)Drawing A/cDr. 1,50,000 
           To Cash  A/c   1,50,000
 (Being salary due but not paid.)   
      
(g)Cash A/cDr. 25,000 
             To Commission Received  A/c  12,500
             To Advance Commission A/c  12,500
 (Being Commission received actual and in advance.)   
     

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.7 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 1 Question No.7 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
 CashAssetsReal AccountPayment received in cash Cash comes in  Debit
 Bad debtLossNominal AccountLoss for not receiving due amount All Expenses and Losses Debit
 Mr. ShyamPersonPersonal AccountMaking paymentGiverCredit

Transaction No. 2

Transaction No. 2 Question No.7 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 2 Question No.7 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
 CashAssetsReal AccountPayment received in cash Cash comes in  Debit
Bad debts recovered GainNominal AccountLoss of last year recovered  All Income and gains  Credit

Transaction No. 3

Transaction No. 3 Question No.7 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 3 Question No.7 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Rent A/c LossNominal AccountExpenses incurred  All Expenses and Losses Debit
Outstanding Rent A/c Representative PersonPersonal AccountActually landlord is giving his cash to business. GiverCredit

Transaction No. 4

Transaction No. 4 Question No.7 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 4 Question No.7 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be

Depreciation

Loss

Nominal

Value of assets diminished

 All Expenses and Losses

Debit

 Office Furniture

Assets

 Real

Assets decreasing

Goes out

Credit

Transaction No. 5

Transaction No. 5 Question No.7 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 5 Question No.7 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording 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 employees are giving their cash to business.

They are Giver

Credit

Transaction No. 6

Transaction No. 6 Question No.7 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 6 Question No.7 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be

 Drawing A/c

Person (Owner)

Personal Account

Cash withdrawal for personal use

owner receiver

Debit

Cash A/c

 Assets

 Real Account

 Cash paid by business

 Cash goes out

Credit

Transaction No. 7

Transaction No. 7 Question No.7 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 7 Question No.7 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be

 Cash

Assets

Real Account

Payment received in cash

 Cash comes in  

Debit

Commission

Income

Nominal Account

Business earing Income

 All Income and gains

Credit

 Advance Commission

Representative Person

Personal Account

Making advance payment

Giver

Credit

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