JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF VARUN

2018 Oct.  

1. Purchased Machinery of Rs. 95,000 and paid Rs. 5,000 for Freight. 
3. Purchased goods for Rs. 1,50,000 and amount paid by Bank. 
6. Purchased Laptop from Nagesh & Co. worth Rs. 1,80,000 @18% GST. 
10. Paid into Bank of Baroda Rs. 70,000. 
12. Paid for Rent Rs. 4,000 and Commission Rs. 3,000. 
15. Bought goods from Tushar Company Ltd. Rs. 1,20,000 at 12% GST and paid 1/2 amount by RTGS. 
16. Cash purchases Rs. 50,000 amount paid by Cheque.  
20. Invoiced goods to Satish Rs. 80,000 at 12% GST and amount received by cheque. 
27. Mrs. Varsha bought goods from us Rs. 90,000 at 12% Trade Discount. 
28. Purchased goods from Abhijeet & Sons Rs. 1,50,000 at 18% GST. 
30. Paid to Abhijeet & Sons and received 10% Cash Discount by cheque. 
31. Paid for Advertisement Rs. 8,000 and Brokerage Rs. 12,000. 

Solution: 

 

In the books of Varun. 

Oct,  1  2018	Machinery A/c        Dr.   Freight A/c           Dr.                 To Cash A/c  [Being purchased machinery and paid for freight]		95,000  5,000	1,00,000
3	Purchase A/c          Dr.               To Bank A/c   [Being purchased goods and paid by bank]		1,50,000	1,50,000
6	Laptop A/c             Dr.   Input CGST 9%      Dr.    Input SGST             Dr.              To Cash A/c   [Being purchased laptop at 18% GST]		180000  16,200	2,12,400
10	Bank of Baroda A/c Dr.            To Cash A/c   [Being paid cash into Bank of Baroda]		70,000	70,000
12	Rent A/c                 Dr.   Commission A/c     Dr.             To Cash A/c  [Being Rent & commission paid]		4,000  3,000	7,000
15	Purchase A/c          Dr.   Input CGST 6%       Dr.  Input SGST 6%       Dr.            To Cash A/c           To Bank A/c  [Being purchased goods at 12%GST and half amount paid by RTGS]		120000  7,200  7,200	67,200  67,200
16	Purchase A/c          Dr.            To Bank A/c   [Being purchased cash and paid by bank]		50,000	50,000

20	Bank A/c                 Dr.              To Sale A/c              To Output CGST 6%              To Output SGST 6%  [Being sold goods at12% GST and received by cheque		89,600	80,000  4,800  4,800
25	Telephone A/c         Dr.              To Cash A/c  [Being telephone charges paid]		90,000	90,000
27	Cash A/c                 Dr.              To Sales A/c   [Being sold goods]		79,200	79,200
28	Purchase A/c          Dr.              To Cash A/c               To Output CGST 9%              To Output SGST 9%  [Being purchased goods at 18% GST from Abhijeet & Sons]		1,77,000	1,50,000  13,500  13,500
30	Abhijeet & Sons A/c Dr.            To Discount received             To Cash A/c  [Being paid to Abhijeet & Sons by cheque at 10% Cash discount]		1,77,000	17,700  1,59,300
31	Advertisement A/c  Dr.  Brokerage A/c        Dr.              To Cash A/c  [Being paid for advertisement and brokerage]		8,000  12,000	20,000

 

Explanatory Notes: 

1. Purchased Machinery and paid Freight. Machinery and Freight account Debited to debit side because Machinery is an asset, Debit What Comes In and Freight is an expense, Debit all expense and losses. and on credit side Cash account Credit What Goes Out. 

 

15. Bought goods from Tushar Company Ltd. at 12% GST and paid 1/2 amount by RTGS. Purchase account debited because Debit the Receiver and CGST and SGST is an expense therefore it is also debited to debit side. On Credit Side Bank and Cash account because half amount is paid by RTGS [Real Time Gross Settlement] which refer to Fund Transfer System. 

 

Calculation: 

 

6. Purchased Laptop from Nagesh & Co. worth Rs. 1,80,000 @18% GST Calculation. 

GST 18% - 1,80,000 *18/100 = 32,400 

CGST 9% - 1,80,000 *9/100 = 16,200 

SGST 9% - 1,80,000 *9/100 = 16,200 

 

 

15. Bought goods from Tushar Company Ltd. Rs. 1,20,000 at 12% GST and paid 1/2 amount by RTGS Calculation. 

GST 12% - 1,20,000 *12/100 = 14,400 

CGST 6% - 1,20,000 *6/100 = 7,200 

SGST 6% - 1,20,000 *6/100 = 7,200 

Bank is paying half of the amount - 1,34,400/2 = 67,200 

 

 

20. Invoiced goods to satish Rs. 80,000 at 12% GST and amount received by cheque Calculation. 

GST 12% - 80,000 *12/100 = 9,600 

CGST 6% - 80,000 *6/100 = 4,800 

SGST 6% - 80,000 *6/100 = 4,800 

 

 

27. Mrs. Varsha bought goods from us Rs. 90,000 at 12% Trade Discount Calculation. 

12% Trade Discount - 90,000 *12/100 = 10,800 

 

 

28. Purchased goods from Abhijeet & Sons Rs. 1,50,000 at 18% GST Calculation. 

GST 18% - 1,50,000 *18/100 = 27,000 

CGST 9% - 1,50,000 *9/100 = 13,500 

SGST 9% - 1,50,000 *9/100 = 13,500 

 

 

30. Paid to Abhijeet & Sons and received 10% Cash Discount by cheque Calculation. 

10% Cash Discount - 1,77,000 *10/100 = 17,700 

 

3 Gold Rule of Accounting. 

Personal Account: 1. Debit the Receiver. 

                               2. Credit The Giver. 

 

Real Account: 1. Debit What Comes In. 

                        2. Credit What Goes Out. 

 

Nominal Account: 1. Debit All Expenses and Losses. 

                               2. Credit All Income and Gain.  

Chapter 4, Ledger Solution

JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF VARUN