Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Get complete step-by-step solutions for T.S. Grewal Double Entry Book Keeping Class 11 - 2025-2026 - Chapter 12 – Accounting for Goods and Services Tax (GST). Study double-entry system details, practice timed problems, and verify answers directly.
Journalise the following Transactions in the books of Rajan, Delhi:
| No. | Transaction |
|---|---|
| (i) | Sold goods to Krishna of Delhi at the list price ₹20,000; less trade discount 10%; add CGST and SGST @ 9% each; allowed cash discount 5%. He paid the amount immediately. |
| (ii) | Supplied goods costing ₹6,000 to Mohan of Kolkata; issued invoice at 10% above Cost; less 5% trade discount; plus IGST @ 18%. |
| (iii) | Goods valued at ₹2,500 distributed from stock as samples, as part of an advertising campaign. These goods were purchased paying CGST and IGST @ 9% each. |
| (iv) | Sold goods costing ₹1,00,000 to Anil of Delhi at a profit of 20% on sales; less 20% Trade Discount; plus CGST and SGST @ 9% each. |
In the Books of Rajan, Delhi
Journal
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (i) | Cash A/c Dr. Discount Allowed A/c Dr. To Sales A/c To Output CGST A/c To Output SGST A/c (Being goods sold to Krishna; list price ₹20,000, TD 10%, Cash Discount 5%, CGST & SGST @ 9% each) [W.N. 1] | 20,178 900 | 18,000 1,539 1,539 | |
| (ii) | Mohan's A/c Dr. To Sales A/c To Output IGST A/c (Being goods supplied to Mohan, Kolkata at 10% above cost ₹6,000; TD 5%; IGST @ 18%) [W.N. 2] | 7,399 | 6,270 1,129 | |
| (iii) | Advertisement/Sales Promotion Expenses A/c Dr. To Purchases A/c To Input CGST A/c To Input IGST A/c (Being goods distributed as free samples; input tax credit reversed) [W.N. 3] | 2,950 | 2,500 225 225 | |
| (iv) | Anil's A/c Dr. To Sales A/c To Output CGST A/c To Output SGST A/c (Being goods sold to Anil, Delhi; profit 20% on sales, TD 20%, CGST & SGST @ 9% each) [W.N. 4] | 1,18,000 | 1,00,000 9,000 9,000 |
W.N. 1 – Transaction (i):
| List Price | 20,000 |
| Less: Trade Discount @ 10% | (2,000) |
| Net Amount | 18,000 |
| Less: Cash Discount @ 5% | (900) |
| Taxable Value (GST basis) | 17,100 |
| Add: CGST @ 9% | 1,539 |
| Add: SGST @ 9% | 1,539 |
| Cash Received | 20,178 |
W.N. 2 – Transaction (ii):
| Cost of Goods | 6,000 |
| Add: Mark-up @ 10% | 600 |
| Invoice Price | 6,600 |
| Less: Trade Discount @ 5% | (330) |
| Net Sales Value | 6,270 |
| Add: IGST @ 18% | 1,129 |
| Mohan's A/c | 7,399 |
W.N. 3 – Transaction (iii):
| Cost of Goods (samples) | 2,500 |
| Add: Input CGST @ 9% (reversed) | 225 |
| Add: Input IGST @ 9% (reversed) | 225 |
| Expense Recorded | 2,950 |
W.N. 4 – Transaction (iv):
| Cost of Goods Sold | 1,00,000 |
| Add: Profit on Cost @ 25%* | 25,000 |
| Selling Price (before TD) | 1,25,000 |
| Less: Trade Discount @ 20% | (25,000) |
| Net Sales Value | 1,00,000 |
| Add: Output CGST @ 9% | 9,000 |
| Add: Output SGST @ 9% | 9,000 |
| Anil's A/c | 1,18,000 |
*If Sales = 100; Profit on Sales = 20; Cost = 80. So Profit on Cost = 20 × 100 / 80 = 25%.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.