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

Question No 8 Chapter No 8

Journalise the following transactions of Singh Enterprises, Delhi::

2017		Rs
June 01	Started business with cash	50,000
June 02	Deposited cheque from Savings Account in firm’s account	2,00,000
June 03	Received cash from Ram	50,000
June 04	Purchased goods of cash	15,000
June 11	Sold goods to M/s. Hari Sales, Delhi	12,000
June 13	Paid to Ramavtar	40,000
June 17	Received from M/s Hari Sales	10,000
June 20	Bought furniture from S.R. Furnishers against Cash ( Including CGST and SGST)	22,400
June 27	Paid rent	28,000
June 30	Paid salary	50,000

CGST and SGST @6% each is levied on Intra-state sale and purchase.

Solution of Question No 8 Chapter No 8: –

In the Books of Singh Enterprises, Delhi

Date	Particulars		L.F.	Debit	Credit
June 1	Cash A/c	Dr.		50,000
	To CapitalA/c				50,000
	(Being started business with cash.)

June 2	BankA/c	Dr.		2,00,000
	To Capital A/c				2,00,000
	(Being cheque deposited from his saving account.)

June 3	Cash A/c	Dr.		50,000
	To Ram A/c				50,000
	(Being amount received from Ram.)

June 4	Purchase A/c	Dr.		15,000
	CGST Input A/c	Dr.		900
	SGST Input A/c	Dr.		900
	To Cash A/c				16,800
	(Being goods purchased for Cash.)

June 11	M/s. Hari Sales A/c	Dr.		13,440
	To Sales A/c				12,000
	To CGST Output A/c				720
	To SGST Output A/c				720
	(Being goods sold to Hari sales.)

June 13	Ramavtar A/c	Dr.		40,000
	To Cash A/c				40,000
	(Being payment made to Ramavtar.)

June 17	Cash A/c	Dr.		10,000
	To M/s Hari Sales A/c				10,000
	(Being payment received from Hari Sales.)

June 20	Furniture A/c	Dr.		20,000
	CGST Input A/c	Dr.		1,200
	SGST Input A/c	Dr.		1,200
	To Cash A/c				22,400
	(Being Furniture purchased)

June 27	Rent A/c	Dr.		28,000
	To Cash A/c				28,000
	(Being rent paid.)

June 30	Salary A/c	Dr.		50,000
	To Cash A/c				20,000
	(Being salary paid.)

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.

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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	Cash received by business	Cash Comes In	Debit
Capital	Personal	Personal Account	Giving cash to business	Owner is 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
Bank	Artificial Person	Personal Account	Bank receiving cheque	Bank is receiver	Debit
Capital	Personal	Personal Account	Giving cash to business	Owner is Giver	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
Cash	Assets	Real Account	Payment received in cash	Cash comes in	Debit
Mr. Ram	Person	Personal Account	Making payment	Ram is 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
Purchase (Goods)	Assets	Real Account	Goods received by business	Goods comes in	Debit
CGST Input A/c	Expenses	Nominal Account	Tax collected from buyer	All Expenses and losses	Debit
SGST Input A/c	Expenses	Nominal Account	Tax collected from buyer	All Expenses and losses	Debit
Cash	Assets	Real Account	Payment made in cash	Cash goes out	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
M/s. Hari Sales	Person	Personal Account	Goods received	Pawan is receiver	Debit
Sales a/c (Goods)	Assets	Real Account	Goods giving by Business	Goods Goes out	Credit
CGST Output A/c	Income	Nominal Account	Tax collected from buyer	All income and gains	Credit
SGST Output A/c	Income	Nominal Account	Tax collected from buyer	All income and gains	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
Cash a/c	Assets	Real Account	cash paid by Business	cash goes out	Credit
Ramavtar a/c	Person	Personal Account	Goods received	Ramavtar is receiver	Debit

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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
Cash	Assets	Real Account	Cash received by business	Cash Comes In	Debit
M/s. Hari Sales	Person	Personal Account	Making payment	Ram is Giver	Credit

Transaction No. 8

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Furniture	Assets	Real Account	Goods received by business	Goods comes in	Debit
CGST Input A/c	Expenses	Nominal Account	Tax collected from buyer	All Expenses and losses	Debit
SGST Input A/c	Expenses	Nominal Account	Tax collected from buyer	All Expenses and losses	Debit
Cash	Assets	Real Account	Payment made in cash	Cash goes out	Credit

Transaction No. 9

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
Cash	Assets	Real Account	Payment made in cash	Cash goes out	Credit

Transaction No. 10

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
Cash	Assets	Real Account	Payment made in cash	Cash goes out	Credit

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