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

Question No. 8 - Chapter No.10 - T.S. Grewal +1 Book 2019

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 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   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

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

Double Column Cash Book | Explained with Example

Triple Column Cash Book | Explained with Example

Petty Cash Book | Example | Subsidiary Books

Thanks Please share with your friends  

Comment if you have any question.

Also, Check out previous Chapters: –

 

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

T.S. Grewals Double Entry Book Keeping - Question No 8 Chapter No 10 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.