3 Marks Question

Question 1013 Marks

Show the accounting equation on the basis of following transactions:

Commenced business with Cash ₹ 20,000; Goods ₹ 50,000 and Furniture ₹ 30,000.
Purchased goods from Gopal on Credit ₹ 40,000.
Sold goods for Cash ₹ 40,000 (costing ₹ 30,000).
Sold goods to Ram on Credit ₹ 65,000 (costing ₹ 50,000).
Withdrew for personal use goods costing ₹ 5,000.
Purchased typewriter for personal use of the proprietor ₹ 20,000.
Purchased chairs for office use for Cash ₹ 10,000.
Paid for printing ₹ 500 and received Commission ₹ 1,200.
Introduced fresh Capital ₹ 40,000.
Paid to Gopal ₹ 30,000.

Question 1023 Marks

Enter the following transactions in Return Outward Book of Modern Furniture House, Udaipur (Rajasthan) assuming CGST @ 6% and SGST @ 6% and post it into Ledger:

2017
Nov. 7	Returned to Sachdeva Furniture Store, Ahmedabad (Gujarat):
	5 Chairs @ ₹ 2,000 each
	1 Table for ₹ 15,000
	Less: 10% Trade Discount
Nov. 22	Returned 8 Chairs to India Furniture House, Jodhpur (Rajasthan) @ ₹ 1,500 each, being not of specified quality
Nov. 24	Returned one Dining Table to Arora & Co., Jaipur (Rajasthan) being not according to sample ₹ 50,000
Nov. 28	Allowance claimed from Delhi Furniture Shop, Ahmedabad (Gujarat) on account of mistake in the invoice ₹ 16,000

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Question 1033 Marks

Show the effect of following transaction on the accounting equation:

a.	Manoj started business with (i) Cash (ii) Goods (iii) Building	₹ 2,30,000 ₹ 1,00,000 ₹ 2,00,000
b.	He purchased goods for cash	₹ 50,000
c.	He sold goods (costing ₹ 20,000)	₹ 35,000
d.	He purchased goods from Rahul	₹ 55,000
e.	He sold goods to Varun (Costing ₹ 52,000)	₹ 60,000
f.	He paid cash to Rahul in full settlement	₹ 53,000
g.	Salary paid by him	₹ 20,000
h.	Received cash from Varun in full settlement	₹ 59,000
i.	Rent outstanding	₹ 3,000
j.	Prepaid Insurance	₹ 2,000
k.	Commission received by him	₹ 13,000
l.	Amount withdrawn by him for personal use	₹ 20,000
m.	Depreciation charge on building	₹ 10,000
n.	Fresh capital invested	₹ 50,000
o.	Purchased goods from Rakhi	₹ 10,000

(Ans: Assets = Cash ₹ 2,42,000 + Goods ₹ 1,43,000 + Building ₹ 1,90,000 + Prepaid Insurouce ₹ 2,000 = ₹ 5,77,000; Liabilities = Outstanding Rent ₹ 3,000 + Creditor ₹ 10,000 + Capital ₹ 5,64,000 = ₹ 5,77,000)

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Question 1043 Marks

Enter the following transactions in proper Subsidiary Books, post them into Ledger Accounts, balance the accounts and prepare a Trial Balance:

2017
Jan. 1	Assets: Cash in hand ₹ 20,000; Debtors: Sri Gopal ₹ 15,000, Poonam & Co. ₹ 30,000; Stock ₹ 1,75,000, Machinery ₹ 1,20,000; Furniture ₹ 40,000
Jan. 1	Liabilities: Bank Overdraft ₹ 33,000; Creditors: Niranjan Lal ₹ 24,000, Bombay Trading Co. ₹ 16,000
Jan. 2	Purchased from Manohar Lal & Sons goods of the list price of ₹ 20,000 at 10% trade discount
Jan. 5	Returned to Manohar Lal & sons goods of the list price of ₹ 2,000
Jan. 10	Issued a Cheque to Manohar Lal & Sons in full settlement of their account
Jan. 12	Sold to Sri Gopal, goods worth ₹ 25,000
Jan. 15	Received Cash ₹ 10,000 and a Cheque for ₹ 8,000 from Sir Gopal. The Cheque was immediately sent to bank
Jan. 16	Withdrew for personal use: Cash ₹ 5,000 and goods ₹ 3,000
Jan. 17	Accepted a bill for 45 days drawn by Niranjan Lal for the amount due to him
Jan. 18	Acceptance received from Poonam & Co. for the amount due from them payable after 30 days
Jan. 19	Sold to Raghubir Brothers, goods valued ₹ 16,000
Jan. 20	Cash purchases ₹ 15,000
Jan. 22	Withdrew from bank fo office use ₹ 10,000
Jan. 23	Purchased from Bombay Trading Co., goods valued ₹ 24,000
Jan. 24	Sri Gopal returned goods worth ₹ 2,000
Jan. 25	Received from Raghubir Brothers ₹ 10,000
Jan. 27	Accepted a bill for ₹ 25,000 for 1 month drawn by Bombay Trading Co
Jan. 27	Paid Rent by Cheque ₹ 2,800
Jan. 27	Received Commission in Cash ₹ 800
Jan. 31	Paid salaries ₹ 5,000

Answer

Note: Answer of Journal proper as per solution (₹ 6,51,600) is different from answer provided by the book (₹ 4,82,000).

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Question 1053 Marks

Journalise the following transactions in the Journal of M/s. Gupta Brothers (Prop. Shri R. K. Gupta), Delhi and post them to the Ledger:

2019		₹
March 1	Started business with cash	2,00,000
March 2	Opened bank account with SBI	80,000
March 4	Goods purchased from Raj, Jaipur (Rajasthan)	22,000
March 5	Goods purchased for cash	30,000
March 8	Goods sold to Naman, Delhi	12,000
March 10	Cash paid to Raj	22,000
March 15	Cash received from Naman	11,700
March 15	Discount allowed	300
March 16	Paid wages	200
March 18	Furniture purchased for office use	5,000
March 20	Withdrawn from bank for personal use	4,000
March 22	Issued cheque for rent	3,000
March 23	Goods taken for household purpose. These goods were purchased from Raj	2,000
March 24	Drawn cash from bank for office use	6,000
March 26	Commission received	1,000
March 27	Bank charges	300
March 28	Cheque issued for life insurance premium of Proprietor	3,000
March 29	Paid salary	10,000
March 30	Cash sales	20,000

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Question 1063 Marks

What do you understand by the classification of accounts? Explain the different types of accounts.

Answer

Classification of Accounts
Personal Account		Impersonal Account
Real Account	Nominal Account

Personal Account: The accounts which relate to an individual, firm, company or an institution are called personal accounts. Account of Mohan, Account of Ram Chander Krishan Chander, Account of D.C.M. Limited, Account of Delhi University, Bank Account, Capital Account of the proprietor, Drawings Account of the proprietor etc. are examples of Personal Accounts.
Rule: Rule for recording a transaction in personal accounts in simple words is ‘Debit the receiver and credit the giver'. In other words, "Debit that person's account who receives something from the business and credit that person's account who gives something to the business”.
Real Account: The accounts of all those things whose value can be measured in terms of money and which are the properties of the business are termed as Real Accounts. Such as, Cash Account, Furniture Account, Machinery Account Building Account, Goodwill Account etc.
Rule: Rule for recording a transaction in real account is ‘Debit what comes in and credit what goes out'.
According to this rule, whenever any property comes into the business, it is debited and when it goes outside the business, it is credited.
Nominal Account: These accounts include the accounts of all expenses and incomes. The examples of nominal accounts relating to expenses are Salaries paid, Rent paid, Discount allowed, Bad Debts etc.
The examples of nominal accounts relating to incomes are Commission received, Interest received, Discount received etc.
Rule: Rule for recording in nominal accounts is, “Debit the expenses and losses and Credit incomes and gains”.
Rules of Debit and Credit (Treditional Clsssification) at a Glance:

S.No	Types of Account	Account to be Debited	Account to be Credited
1	Personal Account	Receiver	Giver
2	Real Account	What comes in	What goes out
3	Nominal Account	Expense and Loss	Income and Gain

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Question 1073 Marks

Enter the following transactions in proper Subsidiary Books and post them into Ledger:

2017
March 2	Purchased from Navrang Traders for ₹ 8,300
March 3	Sold goods to Rohan for ₹ 3,200
March 5	Bought of Ruchi Traders for ₹ 12,100
March 8	Rohan returns the goods for ₹ 600
March 10	Purchased goods from Jaipur Stores of the list price of ₹ 15,400 less 5% Trade Discount
March 12	Sold goods to Arun Traders for ₹ 18,000 less 15% Trade Discount
March 12	Bought of Amit Traders for ₹ 10,000
March 16	Purchased Machinery from Kirloskar Ltd. ₹ 20,000
March 18	Returned goods to Jaipur Stores for ₹ 800 less 5% Trade Discount
March 19	Arun Traders returned goods for ₹ 3,000, less 15% Trade Discount
March 20	Sales to Kalpna & Co. for ₹ 14,700
March 22	Purchased goods from Navrang Traders ₹ 25,000
March 25	Returns outward to Navrang Traders for ₹ 1,200
March 26	Sales to Rupa Traders for ₹ 10,000 less 10% Trade Discount
March 29	Returns inward from Kalpana & Co. for ₹ 2,000

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Question 1083 Marks

Suresh, Kanpur commenced business on 1st January, 2019 introducing capital in cash ₹ 1,00,000. His other transactions during the month were as follows:

2019		₹
Jan 1	Started business with cash	1,00,000
Jan 2	Bought goods for cash	20,000
Jan 3	Sold goods for cash	7,000
Jan 15	Sold goods to Shravan, Delhi Bought goods on	6,000
Jan 18	Credit from Anurag, Kanpur	50,000
Jan 19	Goods returned to Anurag	5,000
Jan 20	Sold goods for cash	30,000
Jan 22	Paid electricity bill	1,000
Jan 28	Paid for telephone bill	500
Jan 29	Paid rent	800
Jan 31	Paid wages	3,000

Enter the above transactions in his books of account.

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Question 1093 Marks

Bobby opened a consulting firm and completed these transactions during November, 2017:

Invested ₹ 4,00,000 cash and office equipment with ₹ 1,50,000 in a business called Bobbie Consulting.
Purchased land and a small office building. The land was worth ₹ 1,50,000 and the building worth ₹ 3,50,000. The purchase price was price was paid with ₹ 2,00,000 cash and a long term note payable for ₹ 3,00,000.
Purchased office supplies on credit for ₹ 12,000.
Bobbie transferred title of motor car to the business. The motor car was worth ₹ 90,000.
Purchased for ₹ 30,000 additional office equipment on credit.
Paid ₹ 75,00 salary to the office manager.
Provided services to a client and collected ₹ 30,000
Paid ₹ 4,000 for the month’s utilities.
Paid supplier created in transaction c.
Purchase new office equipment by paying ₹ 93,000 cash and trading in old equipment with a recorded cost of ₹ 7,000.
Completed services of a client for ₹ 26,000. This amount is to be paid within 30 days.
Received ₹ 19,000 payment from the client created in transaction k.
Bobby withdrew ₹ 20,000 from the business.

Analyse the above stated transactions and open the following T-accounts: Cash, client, office supplies, motor car, building, land, long term payables, capital, withdrawals, salary, expense and utilities expense.

Answer

The transaction (a) increases assets by ₹ 5,50,000 (cash ₹ 4,00,000 and office equipment ₹ 1,5,000) it will be debited and on the other hand it will increase the capital by ₹ 5,50,000, so it will be credited in capital account.

Purchase of land and small office building are assets. On one hand, the purchase of these items will increase their individual accounts and this will increase the total amount of the assets in the business; so, both the accounts will be debited. On the other hand, payment in cash on the purchase of these assets will decrease the cash balance, so cash account will be credited to the extent of amount paid. After payment for building in cash, the balance of building account will be transferred to creditors for building account. This will increase the amount of the creditors, which in turn will increase the total liabilities of the business. Long term payables are regarded as loan to the business that will increase both cash balance (due to intake of loan) as well as liabilities of the business.

Here ‘office supplies’ is an expense. So, according to the golden rule, ‘All expenses are debited’, it will be debited on one hand while on the other hand, office supplies has been purchased on credit, so it will increase the liability, on account of which, supplier’s account will be credited.

Amount invested (motor car) by the proprietor in the business would increase both the capital and assets.

Purchase of additional equipment increases the assets; hence, offices equipment account will be debited.

Further as the office equipment was purchased on credit, it increases the amount of the creditors for office equipment and the creditors account will be credited.

Salary is an expense and as all the expenses are debited, so the payment of salary to the manager will be debited to the salary account. And on the other hand the payment of the salary in cash decreases the cash balance (Assets) so the cash account would be credited (as decrease in assets is credited).

Amount received or receivable from services rendered to the client is revenue for the business. All revenues are to be credited so client service account will be credited.

On the other hand, cash received in exchange of services would increase the cash balance. It would be debited to the cash account.

The ‘utilities’ has been treated as a revenue expense. All expenses are to be debited. Amount paid for utilities would be debited to Utilities account.

Utilities have been paid in cash so the cash account will be credited (as this decreases assets).

Payment to the supplier (creditors) will be debited. It results in the decrease in liabilities. Further as the payment has been made in cash, so it results in decrease in the cash balance (assets) and hence the cash account will be credited.

Purchase of the equipments will be debited in the Equipment Account (as there is increase in the assets). Also as the equipments of worth ₹ 1,00,000 and ₹ 93,000 have been purchased for cash and old equipments of worth ₹ 7,000 have been exchanged so the purchase of the equipments will be debited in the Office Equipment account and equipment of ₹ 7,000 will be credited in the same account.

Receipt from ‘Client services’ is revenue. All revenues are credited. The client services account will be credited and client is considered as debtors, so the client account will be debited.

The client has been considered as Debtors. The amount received from the client will lead to the decrease in the debtors balance and the client account will be credited. Receipts from the client will increase the cash balance (asset), and hence the cash account will be debited.

The amount withdrawn by the proprietor is considered as ‘drawings’. According to the Business Entity Concept, drawings decrease the owner’s capital,) Thus the drawings account will be debited (as decrease in capital is debited). On the other hand as drawings have been made in cash, decrease in cash means cash account will be credited with the amount of drawings.

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Question 1103 Marks

Shri S. K. Gupta, Chandigarh commenced business on 1st April, 2019 with a capital of ₹ 1,20,000 of which ₹ 60,000 was paid into his Bank Account and balance retained as cash. His other transactions during the month were as follows:

2019		₹
April 2	Bought office furniture	20,000
April 5	Purchased goods	16,000
April 8	Purchased goods from Ramesh, Chandigarh	11,000
April 12	Sold goods to Sameer, Delhi	21,000
April 13	Purchased stationery for cash	1,800
April 13	Paid to Ramesh in cash on account*	10,000
	Discount allowed by him*1,000
April 17	Withdrawn cash for office use*	4,000
April 18	Sen of Chandigarh sold goods to S.K. Gupta	30,000
April 19	Cash received from Sameer on account*	20,000
	Allowed him discount*	1,000
April 20	Sold to Raj Banwari, Delhi	40,000
April 28	Cash sales	1,400
April 30	Paid salary by cheque*	8,000
April 30	Paid rent by cheque	5,000
April 30	Paid telephone expenses by cheque	2,000
April 30	Paid cash into bank*	2,000

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Journalise the above transactions and post them to the Ledger.

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Question 1113 Marks

Journalise the following transactions in the books of Kanishk Traders:

i.	Sold goods costing ₹ 1,20,000 to Charu at a profit of $33\frac{1}{3}\%$ on cost less 15% Trade Discount.
ii.	Sold goods costing ₹ 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount.
iii.	Paid by cheque ₹ 8,400 as insurance premium for a period of 12 months starting 1st August 2016. Financial year closes on 31st March every year.

Answer

Working Notes:
WN 1: Calculation of amount of goods sold to Charu.

Cost	=	1,20,000
Add: Profit $@\ 33\frac{1}{3}\%\text{ on }1,20,000$	=	40,000
		$\overline{1,60,000}$
Less: Trade Discount @ 15% on 1,60,000	=	24,000
		$\overline{1,36,000}$

WN 2: Calculation of amount of goods sold to Arun.

Cost	=	80,000
Add: Profit @ 25% on 80,000	=	20,000
		$\overline{1,00,000}$
Less: Trade Discount @ 15%	=	15,000
		$\overline{85,000}$

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Question 1123 Marks

Journalise the following:

Received a V.P.P. from Mohan Lal for ₹ 25,000. Sent a peon to collect it who paid ₹ 200 as cartage.
Received ₹ 1,000 from sales of old newspapers and ₹ 5,000 from sales of old chairs.
Goods given away as charity goods costing ₹ 7,000.
Received Cash from a debtor written off as bad-debt last year ₹ 20,000.
Sold goods costing ₹ 50,000 to Ashok on credit at a profit of 20% on cost.
Sold goods costing ₹ 1,00,000 for ₹ 1,40,000.
Provide ₹ 50,000 as interest on Capital.
Paid rent of building ₹ 60,000 by cheque. Half the building is used by the proprietor for residential purpose.
Outstanding salary at the end of the year ₹ 30,000.

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Question 1133 Marks

Journalise the following transactions is the journal of M/s. Goel Brothers and post them to the ledger.

2017		₹
Jan. 01	Started business with cash	1,65,000
Jan. 02	Opened bank account in PNB	80,000
Jan. 04	Goods purchased from Tara	22,000
Jan.05	Goods purchased for cash	30,000
Jan.08	Goods sold to Naman	12,000
Jan.10	Cash paid to Tara	22,000
Jan.15	Cash received from Naman	11,700
	Discount allowed	300
Jan. 16	Paid wages	200
Jan. 18	Furniture purchased for office use	5,000
Jan. 20	Withdrawn from bank for personal use	4,000
Jan. 22	Issued cheque for rent	3,000
Jan. 23	Goods issued for house hold purpose	2,000
Jan. 24	Drawn cash from bank for office use	6,000
Jan. 26	Commission received	1,000
Jan. 27	Bank charges	200
Jan. 28	Cheque given for insurance premium	3,000
Jan. 29	Paid salary	7,000
Jan. 30	Cash sales	10,000

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Question 1143 Marks

Journalise the following transaction in the Books of the M/s. Bhanu Traders and Post them into the Ledger.

December, 2017		₹
1	Started business with cash	92,000
2	Deposited into bank	60,000
4	Bought goods on credit from Himani	40,000
6	Purchased goods from cash	20,000
8	Returned goods to Himani	4,000
10	Sold goods for cash	20,000
14	Cheque given to Himani	36,000
17	Goods sold to M/s. Goyal Traders	3,50,000
19	Drew cash from bank for personal use	2,000
21	Goyal traders returned goods	3,500
22	Cash deposited into bank	20,000
26	Cheque received from Goyal Traders	31,500
28	Goods given as charity	2,000
29	Rent paid	3,000
30	Salary paid	7,000
31	Office machine purchased for cash	3,000

Answer

Note: For transaction on December 29, 2017, it has been assumed that the rent of ₹ 3,000 is paid through cheque. If instead the rent would have been paid in cash, the cash account would have shown a credit (negative) balance and that is logically not correct.

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Question 1153 Marks

Show an Accounting Equation on the basis of the following transactions:

S.no		₹
(i)	Sunil started business with cash	1,50,000
(ii)	Opened a Bank Account by depositing ₹ 25,000 out of cash
(iii)	He sold his personal car for ₹ 50,000 and deposited the amount in the firm's Bank Account
(iv)	He purchased a building and furniture for	1,00,000
(v)	He purchased goods from Ram on credit	50,000
(vi)	He paid cartage	500
(vii)	He sold to Shyam on credit goods costing ₹ 6,000 for	9,000
(viii)	Received rent from tenants	1,000
(ix)	Received security deposit from tenants	1,500
(x)	Purchased stationery for cash	100
(xi)	Invested in shares (personal)	50,000
(xii)	Received interest in cash	200
(xiii)	Introduced fresh capital	25,000
(xiv)	Goods destroyed by fire	500

Answer

Assets = 52,100 + 25,000 + 1,00,000 + 43,500 + 9,000 = 2,29,600
Liabilities = 50,000 + 1,500 = 51,500
Capital = 1,78,100

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Question 1163 Marks

Enter the following transactions in the Journal of M/s. Karim Bros., Prop. Shri Karim Khan, Kolkata, post to the Ledger:

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).

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Question 1173 Marks

Prove that the accounting equation is satisfied in the following transactions:

		(₹)
i.	Brij Mohan commenced business with Cash	1,00,000
ii.	Bought goods for Cash	60,000
iii.	$\frac{1}{3}\text{rd}$ of the above goods sold at a profit of 20% on cost. Half the payment recieved in Cash
iv.	Purchased typewritter for office use	15,000
v.	Purchased goods on Credit from X	25,000
vi.	Paid to X	15,000
vii.	Paid Salary	3,000
viii.	Received commission	500
ix.	Sold goods for Cash (Cost ₹ 50,000)	60,000

Answer

Working Note:
Calculation of Selling Price

Cost of Goods Sold $=60,000\times\frac{1}{3}$	=	20,000
Add: Profit 20% of ₹ 20,000	=	4,000
$\therefore$ Sales	=	$\overline{24,000}$
Cash Sales (50%)	=	12,000
$\therefore$ Credit Sales	=	12,000

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Question 1183 Marks

Enter the following transactions in subsidiary books, post them into Ledger and prepare a Trial Balance:
The following balances existed in Sunil Bros. books on April 1, 2017:
Assets: Cash in hand ₹ 27,500; Bank Balance ₹ 40,000; Debtors: Ashok ₹ 18,000, Bahadur ₹ 25,000, Charu ₹ 30,000; Stock ₹ 1,60,000 and Furniture ₹ 40,000.
Liabilities: Creditors: Dinesh ₹ 20,000 and Ekta ₹ 15,000.

2017
April 1	Cash Sales ₹ 18,000
April 2	Deposited into Bank ₹ 20,000
April 3	Purchased from Dinesh:
	300 metres Cotton @ ₹ 60 per metre
	200 metres Silk @ ₹ 100 per metre
April 5	Cheque issued to Dinesh for ₹ 25,000
April 6	Accepted a bill at one month for ₹ 15,000 drawn by Dinesh
April 8	Sold to Ashok:
	400 metres Cotton @ ₹ 80 per metre
	250 metres Silk @ ₹ 140 per metre
April 10	Returned by Ashok 50 metres Silk
April 12	Received Cash ₹ 8,000 and a Cheque for ₹ 40,000 from Ashok. Cheque was immediately sent to Bank.
April 13	Received a B/R from Bahadur for ₹ 20,000 at one month
April 15	Accepted a bill at two months drawn by Ekta for the amount due to her.
April 16	Purchased a Computer for office use from Shiva Ltd. for ₹ 45,000 on Credit.
April 18	Cash purchases ₹ 10,000
April 19	Received full payment from Charu by cheque, sent it to Bank. Discount allowed 2%
April 20	Issued a cheque to Dinesh in full payment of his account after deducting 1% discount
April 22	Settled the account of Shiva Ltd. by a cheque
April 24	Proprietor took away goods worth ₹ 5,000 and Cash ₹ 6,000
April 25	Purchased from Ganesh 200 metres Cotton @ ₹ 70 per metre subject to trade discount of 5%
April 27	Paid Rent ₹ 3,000 and Salaries ₹ 8,000
April 30	Interest allowed by bank ₹ 600

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Question 1193 Marks

Pass entries in the books of Krishnan of Bengaluru (Karnataka) in the following cases:

1.	Purchased goods from Karunakaran of Chennai for ₹ 1,00,000. (IGST @18%)
2.	Sold goods to Ganeshan of Bengaluru for ₹ 1,50,000. (CGST @ 6% and SGST @ 6%)
3.	Sold goods to S. Nair of Kerala for ₹ 2,60,000. (IGST @18%)
4.	Purchased a Machinery for ₹ 80,000 from Surya Ltd. against cheque. (CGST @ 9% and SGST @ 9%)
5.	Paid rent ₹ 30,000 by cheque. (CGST @ 6% and SGST @ 6%)
6.	Purchased goods from Ram Mohan Rai of Bengaluru for ₹ 2,00,000. (CGST @ 6% and SGST @ 6%)
7.	Paid insurance premium ₹ 10,000 by cheque. (CGST @ 9% and SGST @ 9%)
8.	Received commission ₹ 20,000 by cheque which is deposited into bank. (CGST @ 9% and SGST @ 9%)
9.	Payment made of balance amount of GST.

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Question 1203 Marks

Prepare journal Entries of the following postings:

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Question 1213 Marks

Journalise the following transactions in the books of Prakash:

Opened a current account with Punjab National Bank ₹ 1,00,000.
Received a cheque of ₹ 12,900 from Chandradev and allowed discount ₹ 300 to him. The cheque was deposited into Bank on the same day.
Purchased machinery for ₹ 1,00,000, payment made by cheque. Installation charge of machinery ₹ 6,000 paid in cash.
Purchased a horse for business for ₹ 20,000.
Sold goods to Gokul at a list price of ₹ 4,000. Trade discount 10% and cash discount 5%. He paid the amount on the same day and availed the cash discount.
Purchased goods for ₹ 10,000 and paid ₹ 400 for carriage on these goods.
Additional cash introduced by the proprietor ₹ 40,000.
Purchased stationery ₹ 800 and postal stamps ₹ 100.
Withdrawn from bank ₹ 20,000.
Received an order to supply goods of ₹ 40,000 from Manu and received ₹ 10,000 as an advance together with the order.
Cash ₹ 10,000 and goods worth ₹ 4,000 were stolen.
Purchased goods from Devendra for ₹ 40,000 and the payment was made by cheque.
Sold $\frac{1}{4}\text{th}$ of the above goods at a profit of 25% on cash.

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Question 1223 Marks

Pass Journal entries in the books of Hari Shankar & Co. from the following:

2017		₹
April 1	Commenced business with cash	50,000
April 2	Purchased goods from Subhash	20,000
April 4	Sold goods to Ramnath	15,000
April 6	Ramnath returned defective goods	1,000
April 10	Received cash from Ramnath and	13,800
April 10	Discount allowed	200
April 12	Gopal sold goods to us	10,000
April 14	Paid to Gopal in full settlement of his account after deducting 5% discount
April 15	Paid Rent	10,000
April 16	Paid Rent of Hari Shankar's residence	5,000
April 18	Purchased goods for cash from Govind for ₹ 6,000 at 20% trade discount
April 20	Purchased goods from Govind for ₹ 10,000 at 20% trade discount
April 24	Paid to Govind ₹ 7,850 in full settlement of his account
April 25	Paid to Subhash ₹ 4,750 discount received ₹ 250
April 30	Paid wages ₹ 400, Salaries ₹ 4,000, Advertisement expenses ₹ 800 and Trade expenses ₹ 1,000

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Question 1233 Marks

Pass entries in the books of Mr. Roopani of Gujarat assuming CGST @ 9% and SGST@ 9%.

1.	Purchased goods for ₹ 2,00,000 from Suryakant of Jaipur (Rajasthan) on Credit.
2.	Sold goods for ₹ 1,50,000 to Mr. Pawar of Mumbai (Maharashtra) and the cheque received was sent to bank.
3.	Sold goods for ₹ 2,50,000 within the state on credit.
4.	Paid insurance premium of 20,000 by cheque.
5.	Purchased furniture for office for ₹ 60,000 by cheque.
6.	Payment made of balance amount of GST.

Answer

Working Note:
GST Common Set Off Procedure:

	Output IGST (₹)	Output CGST (₹)	Output SGST (₹)
	27000	22500	22500
Input IGST	-27,000 (36000 - 9000)	- 9000	-
Input CGST	-	-7,200 (1800 + 5400)	-
Input SGST	-	-	-7,200 (1800 + 5400)
Payable	Nil	6,300	15,300

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Question 1243 Marks

Raghunath had the following transactions in an accounting year:

Commenced business with cash ₹ 50,000.
Paid into bank ₹ 10,000.
Purchased goods for cash ₹ 20,000 and credit ₹ 30,000.
Sold goods for cash ₹ 40,000 costing ₹ 30,000.
Rent paid ₹ 500.
Rent outstanding ₹ 100.
Bought furniture ₹ 5,000 on credit.
Bought refrigerator for personal use ₹ 5,000.
Purchased motorcycle for cash ₹ 20,000.

Create an Accounting Equation to show the effect of the above and also show his Balance Sheet.

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Question 1253 Marks

Journalise the following transactions, post to the ledger:

2017			₹
Nov. 01	Business started with	(i) Cash	1,50,000
		(ii) Goods	50,000
Nov. 03	Purchased goods from Harish		30,000
Nov. 05	Sold goods for cash		12,000
Nov. 08	Purchase furniture for cash		5,000
Nov. 10	Cash paid to Harish on account		15,000
Nov. 13	Paid sundry expenses		200
Nov. 15	Cash sales		15,000
Nov. 18	Deposited into bank		5,000
Nov. 20	Drew cash for personal use		1,000
Nov. 22	Cash paid to Harish in full settlement of account		14,700
Nov. 25	Good sold to Nitesh		7,000
Nov. 26	Cartage paid		200
Nov. 27	Rent paid		1,500
Nov. 29	Received cash from Nitesh		6,800
	Discount allowed		200
Nov. 30	Salary paid		3,000

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Question 1263 Marks

Journalise the following transactions:

Bought goods from Arun for ₹ 2,00,000 at a trade discount of 15% and cash discount of 2%. Paid 80% amount immediately.
Purchased foods for ₹ 20,000 from X and supplied it to Y for ₹ 26,000.
Cash withdrawn from bank ₹ 5,000 for personal use and ₹ 25,000 for office use.
Goods destroyed by fire: Cost Price ₹ 40,000.
Provide 20% depreciation on machinery costing ₹ 50,000.
Out of insurance paid this year, ₹ 3,000 is related to next year.
Allow ₹ 5,000 as interest on capital and charge ₹ 1,000 as interest on drawings.
Sohan who owed us ₹ 25,000 was declared insolvent and a cheque of 40 paise in a ₹ is received from him in full settlement.
Paid Income Tax ₹ 10,000 by cheque.
Salary paid ₹ 80,000 and Salary Outstanding ₹ 20,000.

Answer

Working Notes: Calculation of payment made and outstanding amount to Arun.

Cost	=	2,00,000
Less: Trade Discount (15% on 66,000)		30,000
	=	$\overline{1,70,000}$
Payment made in Cash (80% of 1,70,000)	=	1,36,000
Less: Cash Discount (2% on 1,36,000)	=	2,720
Net Amount	=	$\overline{1,33,280}$
Outstanding amount to Arun (20% of 1,70,000)	=	₹ 34,000

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Question 1273 Marks

Journalise the following transaction in the books of Sanjana and post them into the ledger:

January, 2017		₹
1	Cash in hand	6,000
	Cash at bank	55,000
	Stock of goods	40,000
	Due to Rohan	6,000
	Due from Tarun	10,000
3	Sold goods to Karuna	15,000
4	Cash sales	10,000
6	Goods sold to Heena	5,000
8	Purchased goods from Rupali	30,000
10	Goods returned from Karuna	2,000
14	Cash received from Karuna	13,000
15	Cheque given to Rohan	6,000
16	Cash received from Heena	3,000
20	Cheque received from Tarun	10,000
22	Cheque received from to Heena	2,000
25	Cash given to Rupali	18,000
26	Paid cartage	1,000
27	Paid salary	8,000
28	Cash sale	7,000
29	Cheque given to Rupali	12,000
30	Sanjana took goods for Personal use	4,000
31	Paid General expense	500

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Question 1283 Marks

Enter the following transactions in the Journal of Ganesh Bros.:

2017		₹
March 3	Sold goods to Dev	1,00,000
March 5	Received from Dev in full settlement of his account	98,000
March 6	Sold goods to Manmohan	80,000
March 8	Manmohan returned goods	1,000
March 15	Received from Manmohan in full settlement of his account	78,200
March 16	Received cash from Ram and	19,500
March 16	Discount allowed	500
March 20	Paid cash to Pawan and	4,700
March 20	Discount received from him	300
March 25	Sold goods to Varun of the list price of ₹ 25,000 at 20% trade discount

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Question 1293 Marks

Following balances appeared in the books of Radhika Traders as on 1st April, 2017:
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors; ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000.
In April, 2017, the following transaction took place:

2017		₹
April 2	Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
April 3	Received a draft from Mohan in full settlement and deposited it into Bank
April 5	Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.	9,750
April 8	Sold goods and received a cheque	25,000
April 10	Deposited the above cheque into Bank	12,000
April 12	Sohan deposited in our Bank A/c	4,000
April 16	Paid Income Tax by Cheque	5,600
April 20	Received a cheque from Sohan and sent to Bank	7,800
April 20	Discount allowed	200
April 21	Withdrew from Bank−for office	2,000
April 21	for private use	4,000
April 23	Sent a cheque to X in full settlement of his A/c	4,900
April 27	Cheque of Sohan returned by the bank as dishonoured.
April 28	Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque
April 30	Bank allowed Interest	350
	Paid for Rent by cheque	1,500
	Paid for traveling expenses by cheque	500

Pass Journal entries for the above transactions.

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Question 1303 Marks

Following transactions took place in M/s Goodluck Computers. Prepare the Accounting Vouchers

2019	Particular	₹
Jan-1	Bought Computer Mouse (4 Nos.) vide Cash Memo No. 338*	6,000
Jan-8	Wages paid for the month of December, 2018	10,000
Jan-12	Purchased two Desktop Computers from M/s Computech for cash vide Cash Memo No. 170	32,500
Jan-25	Paid cash to Hari & Sons vide receipt No. 102 for repairs	1,000
Jan-28	Paid postage	200
Jan-30	Cash withdrawn from bank	10,000

Transactions marked with * are subject to levy of CGST and SGST @ 6% each.

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Question 1313 Marks

Prepare the Accounting Vouchers for the following transactions:?

2019	Particular	₹
Jan-1	Started business with cash	2,00,000
Jan-1	Purchased furniture vide Cash Memo No. 210*	10,000
Jan-5	Opened a Bank Account in Canara Bank	60,000
Jan-10	Purchased garments on credit from M/s Madras Store vide Bill No. 291*	20,000
Jan-12	Sold shirts to Ram Parkash on credit vide Bill No. 1*	5,000
Jan-15	Sold shirts for cash vide Cash Memo No. 1*	7,000
Jan-20	Withdrew from bank for office use by cheque No. 23301	20,000
Jan-27	Withdrew for personal use by cheque No. 51003	5,000

Transactions marked with * are subject to levy of CGST and SGST @ 6% each.

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Account 3 Marks Question