Journalise the following transactions in the books of Ashok General Stores
2019 May
1. Received Rs.5,000 from Ram on behalf of Bharat.
4. Purchased Goods for cash Rs.55,000.
8. Paid for Salary Rs.8,000.
12. Purchased goods from Ganesh Rs.30,000 on credit.
17. Sold goods to Mrs. Neha Rs.60,000 on credit.
20. Purchased Machinery of Rs.80,000 @12% GST and amount paid by cheque.
25. Paid to SG & Sons by cheque Rs.30,000.
28. Received Commission Rs.10,000 from Ganesh.
30. Paid Rent Rs.5,000.
31. Purchased Shares of Atul Company Ltd. for Rs.10,000 through Demat Account.
1. Received Rs.5,000 from Ram on behalf of Bharat.
4. Purchased Goods for cash Rs.55,000.
8. Paid for Salary Rs.8,000.
12. Purchased goods from Ganesh Rs.30,000 on credit.
17. Sold goods to Mrs. Neha Rs.60,000 on credit.
20. Purchased Machinery of Rs.80,000 @12% GST and amount paid by cheque.
25. Paid to SG & Sons by cheque Rs.30,000.
28. Received Commission Rs.10,000 from Ganesh.
30. Paid Rent Rs.5,000.
31. Purchased Shares of Atul Company Ltd. for Rs.10,000 through Demat Account.
Solution:
In the books Ashok General Stores.
DATE | PARTICULARS | L/F | DEBIT | CREDIT |
2019 | Cash A/c Dr. | 5,000 | | |
4 | Purchase A/c Dr. | 55,000 | | |
8 | Salary A/c Dr. | 8,000 | | |
12 | Purchased A/c Dr. | 30,000 | | |
17 | Neha A/c Dr. | 60,000 | | |
20 | Machinery A/c Dr. | 80,000 | | |
25 | SG & Sons A/c Dr. | 30,000 | | |
28 | Commission A/c Dr. | 10,000 | 10,000 | |
30 | Rent A/c Dr. | 5,000 | | |
31 | Atul company A/c Dr. | 10,000 | |
Explanatory Notes:
1. Received Rs.5,000 from Ram on behalf of Bharat. Cash account debit to Ram account because cash is coming into Business and Ram is paying the cash on behalf of Behalf of Bharat. [Refer Personal Account Formula].
4. Purchased Goods for cash Rs.55,000. Purchased account is debited to cash Because goods is coming inside the business and cash is going out of the Business [Refer Real Account Formula].
Salary is an expense for business therefore all expenses are debit and paid by cash account credit
12. Purchased goods from Ganesh Rs.30,000 on credit: Purchased goods from Ganesh on credit, Purchased account debit to Ganesh account because cash is not paid yet to ganesh
Calculation:
20. GST 12% - 80,000 *12/100 = 9,600
CGST 6% - 80,000 *6/100 = 4,800
SGST 6% - 80,000 *6/100 = 4,800
Conclusion:
In summary, Ashok General Stores demonstrated financial acumen in key transactions:
・From Ram to India, an efficient Rs. 5,000 receipts.
・Cash purchase of goods Rs.55,000.
・Credit transactions with Ganesh and Mrs. Neha.
・80,000 purchase of machinery with check payment.
・Financial discretion in disbursement of payments and salaries to SG & Sons.
・Receipt of Rs.10,000 commission from Ganesh.
・Through demat account in shares of Atul Company Ltd. Rs. 10,000 with forward investment.
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.
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