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Journalise the following transactions in the books of Sanjay General Stores: 1 Started business with cash ₹ 50,000, Bank ₹ 1,00,000, Goods worth ₹ 50,000.,

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Question

Journalise the following transactions in the books of Sanjay General Stores:

2019 June

1 Started business with cash ₹ 50,000, Bank ₹ 1,00,000, Goods worth ₹ 50,000.

5 Purchased goods from Mohan on credit ₹ 80,000 at 10% Trade Discount.

9 Sold goods to Urmila ₹ 30,000 at 5% Trade Discount.

12 Paid into Dena Bank ₹ 40,000.

15 Goods worth ₹ 5000 were distributed as a free samples.

22 Paid for Commission ₹ 5,000 to Anand.

24 Received ₹ 28,000 from Urmila in full settlement of her account by Debit Card.

29 Paid for Advertisement ₹ 9,000.

30 Purchased Laptop for ₹ 20,000 @ 28% GST and amount paid by NEFT.

Journal Entry
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Solution

Journal of Sanjay General Stores
Date Particulars L.F. No. Debit Amount (t) Credit Amount (t)
2019        
June 1 Cash A/c     ...Dr.   50,000  
  Bank A/c     ...Dr.   1,00,000  
  Goods A/c   ...Dr.    50,000  
        To Capital A/c     2,00,000
  (Being the business started with cash, bank balance and stock of goods)      
5 Purchases A/c     ...Dr.    72,000  
        To Mohan's A/c      72,000
  (Being the goods purchased on credit at 10% trade discount)      
9 Urmila's A/c     ... Dr.    28,500  
        To Sales A/c      28,500
  (Being goods sold on credit @ 5% trade discount)      
12 Dena Bank A/c    ...Dr.    40,000  
         To Cash A/c       40,000
  (Being cash paid into Dena Bank)      
15 Advertisement A/c   ...Dr.    5,000  
         To Goods distributed as free samples A/c.      5,000
  (Being the goods distributed as free samples)      
22 Commission A/c    ...Dr.    5,000  
          To Cash A/c      5,000
  (Being commission paid to Anand)      
24 Bank A/c            ...Dr.    28,000   
  Discount A/c      ...Dr.    500  
          To Urmila's A/c      28,500
  (Being amount received through debit card and discount allowed)      
29 Advertisement A/c      ...Dr.    9,000  
         To Cash A/c     9,000
  (Being advertisement expenses paid in cash)      
30 Laptop/Computer A/c      ...Dr.   20,000    
   Input CGST A/c        ...Dr.    2,800  
  Input SGST A/c      .... Dr.   2,800  
           To Bank A/c     25,600
  (Being Laptop purchased with 28% GST and amount paid by NEFT)      
  Total   4,13,600 4,13,600

Working Note:

5th June 2019:

Calculation of Trade discount

Purchased goods for ₹ 80,000 @ 10% Trade discount

Trade discount = `80,000 × 10/100 `= ₹ 8,000

Net Purchase Price = 80,000 – 8,000 = ₹ 72,000

24th June 2019:

Discount allowed to Urmila = Amount due – Amount received

= 28,500 – 28,000

= ₹ 500

30th June 2019:

Calculation of CGST and SGST

Price of Laptop = ₹ 20,000 @ 28% GST.

CGST = (Price of Laptop) × Rate of CGST

= `20,000 × 14/100`

= ₹ 2,800

SGST = (Price of Laptop) × Rate of SGST

= `20,000 × 14/100`

= ₹ 2,800

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Chapter 3: Journal - Practical Problems [Page 85]

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30 Paid to Urmila ₹ 20,000 on behalf of Sharmila.

Journalise the following transactions in the books of Anand General Merchants.

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5 Purchased goods for cash ₹ 30,000.
7 Sold goods of ₹ 10,000 to Suresh.
10 Purchased Furniture from Mr. Govind on credit ₹ 30,000.
15 Paid for Rent ₹ 3000 and paid by debit card.
21 Purchased goods from Urmila on credit ₹ 70,000.
27 Paid for Transport ₹ 1,000 to United Transport.
30 Paid to Urmila ₹ 20,000 on behalf of Sharmila.

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