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. 

Solution:

 

In the books Ashok General Stores. 

DATE	PARTICULARS	L/F	DEBIT	CREDIT
2019  May,  1	Cash A/c                   Dr.              To Bharat A/c   [Being received cash from ram on behalf of Bharat]		5,000	5,000
4	Purchase A/c              Dr.            To Cash A/c  [Being purchased goods]		55,000	55,000
8	Salary A/c                      Dr.            To Cash A/c   [Being paid Salary]		8,000	8,000
12	Purchased A/c            Dr.            To Ganesh A/c   [Being purchased goods from Ganesh on credit]		30,000	30,000
17	Neha A/c                     Dr.           To Sales A/c  [Being Sold Goods to Neha on credit]		60,000	60,000
20	Machinery A/c           Dr.  Input CGST                Dr.  Input SGST                   Dr.             To Bank A/c   [Being purchased machinery @125 GST and paid by cheque]		80,000  4,800  4,800	89,600

25	SG & Sons A/c             Dr.             To Bank A/c   [Being paid SG & Sons by cheque]		30,000	30,000
28	Commission A/c    Dr.              To Ganesh A/c  [Being received Commission from ganesh]		10,000	10,000
30	Rent A/c                        Dr.              To Cash A/c   [Being paid rent]		5,000	5,000
31	Atul company A/c     Dr.              To Bank A/c  [Being purchased shares of atul company Ltd through demat account]		10,000	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]. 

 

8. Paid for Salary Rs.8,000:  

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 

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. 

JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF ASHOK GENERAL STORES