Question

Journalise the following transactions in the books of Hero Enterprises:

Balance on 1st April 2019

Cash at Bank ₹ 80,000, Sundry Debtors Ram ₹ 20,000, Rahim ₹ 30,000, Stock ₹ 55,000, Building ₹ 1,50,000.

Credit Balances on 1st April 2019
Sundry Creditors Swapna ₹ 20,000, Rohit ₹ 30,000, Bank Loan ₹ 50,000.

2019 April

1 Purchased goods worth ₹ 1,50,000 from Prashant & Co., less 10% Trade Discount.

4 Sold goods to Mr. Amit Sharma ₹ 70,000 at 10% Trade Discount on credit.

9 Purchased goods for cash ₹ 2,00,000 @ 28% GST amount paid by NEFT.

12 Sold Goods to Aditya Ray of ₹ 90,000 @ 28% GST.

15 Paid for Rent ₹ 5000 and Salary ₹ 18,000.

17 Paid for Proprietor’s house Rent ₹ 12,000.

20 Sold half of the goods purchased on 9th April at 20% Profit and 28% GST.

25 Paid for Wages ₹ 1,500.

25 Purchased Furniture ₹ 1,80,000 @ 12% GST and amount paid by RTGS.

28 Sold an old Furniture of ₹ 20,000 for ₹ 12,000.

30 Sold shares of ₹ 10,000 for ₹ 15,000 and the amount received by cheque.

Answer 1

Journal of Hero Enterprises
Date	Particulars	L.F. No.	Debit Amount (₹)	Credit Amount (₹)
2019April 1	Bank A/c      ...Dr.		80,000
	Sundry Debtors A/c    ...Dr.		50,000
	Stock of Goods A/c    ...Dr.		55,000
	Building A/c       ...Dr.		1,50,000
	To Sundry Creditors A/c			50,000
	To Bank Loan A/c			50,000
	To Capital A/c			2,35,000
	(Being the balances of previous year brought forward)
1	Purchases A/c     ...Dr.		1,35,000
	To Prashant & Co.'s A/c			1,35,000
	(Being the goods purchased on credit from Prashant & Co. at 10% T.D.)
4	Mr. Amit Sharma's A/c     ...Dr.		63,000
	To Sales A/c			63,000
	(Being goods purchased on credit from Mr. Amit Sharma @ 10%T.D.)
9	Purchases A/c     ...Dr.		2,00,000
	Input CGST A/c    ...Dr.		28,000
	Input SGST A/c     ...Dr.		28,000
	To Bank A/c			2,56,000
	(Being goods purchased with 28% GST and amount paid by NEFT)
12	Aditya Ray's A/c     ...Dr.		1,15,200
	To Sales A/c			90,000
	To Output CGST A/c			12,600
	To Output SGST A/c			12,600
	(Being goods sold on credit with 28% GST to Aditya Ray)
15	Rent A/c      ...Dr.		5,000
	Salary A/c      ...Dr.		18,000	23,000
	To Cash A/c
	(Being rent and salary paid in cash)
17	Drawings A/c     ...Dr.		12,000
	To Cash A/c			12,000
	(Being proprietor's house rent paid from business fund)
20	Cash A/c     ...Dr.		1,53,600
	To Sales A/c.			1,20,000
	To Output CGST A/c			16,800
	To Output SGST A/c			16,800
	(Being the goods sold at 20% profit with 28% GST)
25	Wages A/c    ...Dr.		1,500
	To Cash A/c			1,500
	(Being the wages paid in cash)
25	Furniture A/c     ....Dr.		1,80,000
	Input CGST A/c    ...Dr.		10,800
	Input SGST A/c    ...Dr.		10,800
	To Bank A/c			2,01,600
	(Being furniture purchased with 12% GST and amount paid by RTGS)
28	Cash A/c     ...Dr.		12,000
	Loss on sale of furniture A/c     ...Dr.		8,000
	To Furniture A/c			20,000
	(Being furniture sold at a loss)
30	Bank A/c Dr.		15,000
	To Shares A/c			10,000
	To Profit on sale of shares A/c			5,000
	(Being shares sold at a profit)
	Total		13,30,900	13,30,900

Working Notes:

1. 2019 April, 20:

Cost of Goods sold = `1/2` of purchases on 9th April, 2019

=` 1/2 × 2,00,000`

= ₹ 1,00,000

Selling price of Goods sold = `120/100 × ₹ 1,00,000 = ₹ 1,20,000`

2. April, 28:

Loss on sale of furniture = Cost of furniture - Selling price

= 20,000 - 12,000

= ₹ 8,000

3. April, 30:

Profit on sale of shares = Selling price - Cost of shares

= 15,000 - 10,000

= ₹ 5,000