Question

Journalise the following transactions in the books of Dhoni Auto Car Centre:

2018 Nov

1 Sold 1,000 shares for ₹ 100 each and paid brokerage @ 1% and the amount credited to our account.

4 Purchased goods from Ashish & Co. of ₹ 2,00,000.

6 Sold goods to Virat & Co. ₹ 1,50,000.

8 Paid for Advertisement ₹ 30,000 to Times of India.

10 Paid for Printing and Stationery ₹ 7,000.

12 Purchased goods from Prakash & Co. ₹ 1,50,000 @ 18% GST.

15 Paid for Transport charges ₹ 10,000 @12% GST.

20 Purchased goods from Vikram & Sons ₹ 1,20,000 @ 18% GST and paid half the amount immediately.

25 Paid to Prakash & Co. less 10% discount.

30 Invoiced Goods to Sanjay ₹ 60,000.

31 Sanjay returned goods of ₹ 10,000.

31 Sanjay became insolvent and recovered only 50 paise in a rupee as a final settlement from him.

Answer 1

Journal of Dhoni Auto Car Centre
Date	Particulars	L.F. No.	Debit Amount (₹)	Credit Amount (₹)
2018 Nov. 1	Bank A/c    ...Dr.		99,000
	Brokerage A/c    ...Dr.		1,000
	To Shares A/c			1,00,000
	(Being shares sold and brokerage paid)
4	Purchases A/c      ...Dr.		2,00,000
	To Ashish & Co's A/c			2,00,000
	(Being goods purchased on credit from Ashish & Co.)
6	Virat & Co's A/c    ...Dr.		1,50,000
	To Sales A/c			1,50,000
	(Being the goods sold to Virat & company on credit)
8	Advertisement A/c     ...Dr.		30,000
	To Cash A/c			30,000
	(Being Advertisement bill paid to Times of India)
10	Printing and Stationery A/c    ...Dr.		7,000
	To Cash A/c			7,000
	(Being printing and stationery bill paid in cash)
12	Purchases A/c     ...Dr.		1,50,000
	Input CGST A/c    ...Dr.		13,500
	Input SGST A/c     ...Dr.		13,500
	To Prakash & Co's A/c			1,77,000
	(Being goods purchased on credit with 18% GST from Prakash & Company)
15	Transport charges A/c     ...Dr.		10,000
	Input CGST A/c    ...Dr.		600
	Input SGST A/c   ...Dr.		600
	To Cash A/c			11,200
	(Being transport charges with GST paid in cash)
20	Purchases A/c     ...Dr.		1,20,000
	Input CGST A/c    ...Dr.		10,800
	Input SGST A/c    ...Dr.		10,800
	To Cash A/c			70,800
	To Vikram & Sons A/c			70,800
	(Being goods purchase with 18% GST from Vikram & Sons and paid half of the amount)
25	Prakash & Co's A/c    ...Dr.		1,77,000
	To Cash A/c			1,59,300
	To Discount A/c			17,700
	(Being cash paid to Prakash & Co and earned 10% cash discount)
30	Sanjay's A/c     ...Dr.		60,000
	To Sales A/c			60,000
	(Being goods sold to Sanjay on Credit)
30	Sales Return A/c     ...Dr.		10,000
	To Sanjay's A/c			10,000
	(Being goods returned by Sanjay)
30	Cash A/c    ...Dr.		25,000
	Bab debts A/c     ...Dr.		25,000
	To Sanjay's A/c			50,000
	(Being 50% of the amount due recovered from the estate of Sanjay)
	Total		11,13,800	11,13,800

Working Notes:

1. 2018, Nov. 1:

Amount credited to Bank A/c = Sales proceed – Brokerage @ 1%

= `1,000 × 100 - 1/100 × 1,000 × 100`

= 1,00,00 - 1,000

= ₹ 99,000

2. Nov. 12:

Net Purchase price = Purchase price + 9% CGST + 9% SGST

= `1,50,000 + 9/100 × 1,50,000 + 9/100 × 1,50,000`

= 1,50,000 + 13,500 + 13,500

= ₹ 1,77,000

3. Nov. 20:

Net Purchase price = Purchase price + 9% CGST + 9% SGST

= `1,20,000 + 9/100 × 1,20,000 + 9/100 × 1,20,000`

= 1,20,000 + 10,800 + 10,800

= ₹ 1,41,600

Amount paid = `1/2 `of 1,41,600 = ₹ 70,800 and credit purchased = ₹ 70,800.

4. Nov. 25:

Cash discount = Amount due to Prakash & Co × 10%

= `1,77,000 × 10/100`

= ₹ 17,700

5. Bad debts = Amount due from Sanjay – Amount recovered

= 50,000 - 50% of 50,000

= 50,000 - 25,000

= ₹ 25,000