Question

Journalise the following transactions in the books of Harbhajan & Co. for the month of 1st April 2019:

Balance on 1st April 2019

Cash in hand ₹ 35,000, Cash at Bank ₹ 25,000, Furniture ₹ 1,50,000, Laptop ₹ 1,00,000

Debtors: Sangita ₹ 40,000, Viru ₹ 30,000

Creditors: Ganesh ₹ 10,000, Garima ₹ 40,000, Bank loan ₹ 50,000.

2019 April

1 Purchased goods from Ajay Kumar worth ₹ 2,50,000 at 10% Trade discount @ 18% GST and paid 1/4 amount in Cash.

5 Purchased shares of Infosys Company ₹ 50,000 and ₹ 500 paid as a brokerage for Demat A/c.

8 Sold goods to Raj worth ₹ 90,000 at 10% Trade discount and 1/3 amount received by cash and 5% cash discount is allowed.

12 Paid house rent of proprietor ₹ 9,000 and office rent ₹ 5,000.

15 Purchased Laptop of ₹ 60,000 @ 18% GST and paid amount by cheque.

20 Paid transport charges on the above Laptop ₹ 1,000 @ 18% GST.

25 Paid Commission ₹ 20,000 to Ram.

26 Paid Telephone Charges ₹ 1,000.

28 Transferred from private Bank A/c of proprietor to business Bank A/c ₹ 40,000.

30 Bought goods for ₹ 1,50,000 @ 12% as GST by cheque.

30 Exchanged our Furniture of ₹ 30,000 against a Motor car of the same value for business.

Answer 1

Journal of Harbhajan & Co.
Date	Particulars	L.F. No.	Debit Amount (₹)	Credit Amount (₹)
2019 April 1	Cash A/c      ...Dr.		35,000
	Bank A/c     ....Dr.		25,000
	Furniture A/c  ...Dr.		1,50,000
	Laptop (Computer) A/c   ...Dr.		1,00,000
	Debtor A/c    ...Dr.		70,000
	To Creditors A/c			50,000
	To Bank Loan A/c			50,000
	To Capital A/c			2,80,000
	(Being the balances of assets and liabilities brought forward and difference is transfered to capital A/c)
1	Purchases A/c    ...Dr.		2,25,000
	Input CGST A/c   ...Dr.		20,250
	Input SGST A/c    ...Dr.		20,250
	To Cash A/c			66,375
	To Ajay Kumar's A/c			1,99,125
	(Being goods purchased @ 10% T.D. with 18% GST and 1/4 amount paid in cash)
5	Investments in shares of Infosys A/c    ...Dr.		50,500
	To Bank A/c			50,500
	(Being shares of Infosys Company Purchased and brokerage paid)
8	Cash A/c      ...Dr.		25,650
	Discount A/c    ...Dr.		1,350
	Raj's A/c  ... Dr.		54,000
	To Sales A/c			81,000
	(Being goods sold @10% T.D. and 5% C.D. 1/3 amount received in cash)
12	Drawings A/c     ...Dr.		9,000
	Office Rent A/c     ...Dr.		5,000
	To Cash A/c			14,000
	(Being proprietors house rent and office rent paid in cash)
15	Laptop (Computer) A/c    ...Dr.		60,000
	Input CGST A/c    ...Dr.		5,400
	Input SGST A/c   ...Dr.		5,400
	To Bank A/c			70,800
	(Being Laptop with 18% GST purchased and amount paid by cheque)
20	Laptop (Computer) A/c   ...Dr.		1,000
	Input CGST A/c    ...Dr.		90
	Input SGST A/c     ...Dr.		90
	To Cash A/c			1,180
	(Being transport charges with GST . 18% paid in cash)
25	Commission A/c Dr.		20,000
	To Cash A/c			20,000
	(Being commission paid in cash)
26	Telephone charges A/c    ...Dr.		1,000
	To Cash A/c			1,000
	(Being telephone charges paid in cash)
28	Bank A/c      ...Dr.		40,000
	To Capital A/c			40,000
	(Being the amount from private bank of proprietor transferred to business Bank A/c)
30	Purchases A/c   ...Dr.		1,50,000
	Input CGST A/c   ...Dr.		9,000
	Input SGST A/c    ...Dr.		9,000
	To Bank A/c			1,68,000
	(Being goods purchased with 12% GST and amount paid by cheque)
30	Motor Car A/c     ...Dr.		30,000
	To Furniture A/c			30,000
	(Being furniture exchanged for businesses motor car)
	Total		11,21,980	11,21,980

Working Notes:

1. 8 April 2019:

Net selling price = Selling price - 10% Trade discount

= 90,000 - 10% on 90,000

= 90,000 - 9,000

= ₹ 81,000

Cash received = `1/3  "of"  81,000`

= 13 × 81,000

= ₹ 27,000

Net cash received = 27,000 - Cash discount @ 5%

= `27,000 - 5/100 × 27,000`

= 27,000 - 1,350

= ₹ 25, 650

Credit sale = `2/3  "of"  81,000`

= 23 × 81,000

= ₹ 54,000