Question No 8 Chapter No 10 - T.S. Grewal 11 Class

Question No 8 Chapter No 10

With Goods and Services Tax (GST)
Prepare Two-Column Cash Book of Bimal, Lucknow from the following transactions:

2018		Rs.	2018		Rs.
Jun.1	Cash Balance	5,000	Jun.21	Drawn from Bank	5,000
Jun.1	Bank Balance	17,500	Jun.29	Paid office salaries in cash	4,000
Jun.5	Cash received from the sale of shares	5,000	Jun.30	Sold goods in cash Rs 8,000 plus CGST and SGST @6% each and banked the same
Jun.6	Cheque Received as an advance against the sale, paid into a bank	50,000	Jun.30	Paid rent by cheque including CGST and SGST @6%	1,120
Jun.7	Paid S. Bose by cheque	12,500	Jun.30	Paid into Bank	7,500
	Discount received	200
Jun.9	Paid wages in cash	3,000
Jun.20	Received a cheque from A. Mukherjee and sent it to bank	6,000

The solution of Question No 8 Chapter No 10: –

In the Books of Mr Bimal, Lucknow

Dr.	Cash Book								Cr.
Date	Particulars	L.F.	Cash	Bank	Date	Particulars	L.F.	Cash	Bank
Jun. 2018					Jun. 2018
1	To Bal. B/d		5,000	17,500	7	To S. Bose A/c			12,500
5	To Investment A/c*		5,000		9	By Wages A/c		3,000
6	To Adv. From Customer A/c*			50,000	21	By Cash A/c	C		5,000
20	To A. Mukherjee A/c			6,000	29	By Salaries A/c		4,000
21	To Bank A/c	C	5,000		30	By Rent A/c*			1,000
30	To Sales A/c*			8,000	30	By Input CGST A/c			60
30	To Output CGST A/c			480	30	By Input SGST A/c			60
30	To Output SGST A/c			480	30	By Bank A/c	C	7,500
21	To Cash A/c	C		7,500	30	By Balance C/d		500	71,340

			15,000	89,960				15,000	89,960

All transactions which are highlighted with (*) are explained as following as follows: –

*Jun.5 Cash received from sale of shares

Share is our assets which is named as Investment, So that’s why we had used the account Investment while posting the transaction into cash book.

*Jun.6 Cheque Received as an advance against the sale, paid into a bank

Cheque received as an advance against sale but the name of the person or firm is not given. So, that’s why we have the account of Advance from the customer while posting the transaction into the cash book.

But in real-world, nothing will happen with you like this, Because the name of the customer will be written on the cheque.

*Jun.30 Sold goods in cash Rs 8,000 plus CGST and SGST @6% each and banked the same

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The calculation of Amount of CGST and SGST @ 6% each
8,000 * 6% = 480/- each

*Jun.30 Sold goods in cash Rs 8,000 plus CGST and SGST @6% each and banked the same

In this transaction, we will calculate the amount of CGST and SGST @ 6% each with help of following formula because the total amount is given. It means it includes the amount of CGST & SGST.

Total Amount X Rate(CGST or SGST)

100 + Rate of CGST + Rate of SGST

1,120 X 6

100 + 6 + 6

6,720

112

Amount of GST =Rs. 60/- each

To understand more about cash book please check out following links: –

Cash Book | Types of Cash Book | Subsidiary Books

Single Column Cash Book | Explained with Example

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Double Column Cash Book | Explained with Example

Triple Column Cash Book | Explained with Example

Petty Cash Book | Example | Subsidiary Books

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Also, Check out previous Chapters: –

Check out T.S. Grewal +1 Book 2019 @ Oficial Website of Sultan Chand Publication

T.S. Grewal’s Double Entry Book Keeping

Question No 8 Chapter No 10 – T.S. Grewal 11 Class

The solution of Question No 8 Chapter No 10: –

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