JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF NINA GENERAL STORES

2018 Sept   

1. Sold goods of Rs. 50,000 at 10% Trade Discount and 10% Cash Discount to Raj and received 50% by cheque and 20% by Cash. 
3. Bought goods worth Rs. 60,000 from Prashant at 7.5% Trade Discount and Half amount paid by cash. 
5. Returned goods worth Rs.550 to Prashant.  
7. Sold goods worth Rs 90,000 to Ranvir on credit at 10% Trade Discount. 
12. Received commission Rs. 4,500.  
15. Received cheque of Rs. 80,000 from Ranvir in Full settlement of his account. 
18. Purchased computer worth Rs. 80,000 from Reliance Company by cheque at 28% GST.  
22. Wages paid Rs. 13,000.     
23. Paid for life insurance premium Rs. 17,000. 
27. Sold goods worth Rs. 28,000 to Tushar who paid us Rs. 18,000 immediately. 

Solution:

 

In the books of Nina General Stores. 

DATE	PARTICULARS	L/F	DEBIT	CREDIT
2018  Sept, 1	Bank A/c              Dr.         Cash A/c           Dr.              Raj A/c             Dr.                 Discount allowed A/c    Dr.               To Sales A/c  [Being Sold goods to Raj allowed T.D 10% and C.D 10%, 50% received by cheque and 20% by cash]		20,250    4,500	45,000
3	Purchase A/c              Dr.                 To Cash A/c             To Prashant A/c   [Being purchased goods from Prashant and received C.D 7.5% and Half amount paid by cash]		55,500	27,750  27,750
5	Cash A/c            Dr.                       To Purchase Return A/c  [Being returned goods from Prashant]		550	550
7	Ranvir A/c           Dr.                        To Sales A/c   [Being sold goods to ranvir on credit at 10% T.D]		81,000	81,000
12	Cash A/c                   Dr.           To Commission A/c     [Being commission received]		4,500	4,500

 

15	Bank A/c                        Dr.  Discount A/c                 Dr.              To Ranvir A/c  [Being received cheque from Ranvir in full settlement]		80,000  1,000	81,000
18	Computer A/c                Dr.  Input CGST 14%        Dr.  Input SGST 14%              Dr.             To Bank A/c   [Being purchased computer by cheque at 28% GST]		80,000  11,200  11,200	1,02,400
22	Wages A/c              Dr.            To Cash A/c   [Being paid wages]		13,000	13,000
23	Life Insurance A/c         Dr.            To Cash A/c  [Being life insurance premium paid]		17,000	17,000
27	Cash A/c                 Dr.  Tushar A/c                Dr.            To Sales A/c  [Being sold goods to Tushar and Paid 18,000 immediately]		18,000  10,000	28,000

 

Explanatory Notes: 

1. Sold goods at 10% T.D and 10% C.D to Raj and received 50% by cheque and 20% by Cash. Half of the amount is received by cheque and 20% is received by Cash therefore bank and cash account are debited, and Remaining amount is not received therefore written has Raj account on Debit side. And Raj is receiving a 10% Cash Discount, for us C.D is an expense therefore it is shown on Debit side. 

 

15. Received cheque from Ranvir in full settlement of his account. On Debit side bank account and Discount account because Ranvir as to pay Rs. 81,000 and He is paying 80,000 therefore we assume that 1,000 is a discount given to Tushar.  On Credit side Ranvir account is credited because Ranvir is paying, credit the Giver. 

 

23. Paid Life Insurance Rs. 17,000. 

On the Debit side Life Insurance A/c because all expenses are debited and credit to Cash A/c because Insurance is paid in Cash. 
 

 

Calculation: 

 

1. Sold goods of Rs. 50,000 at 10% Trade Discount and 10% Cash Discount to Raj and received 50% by cheque and 20% by Cash Calculation: 

Trade Discount 10% - 50,000 *10/100 = 5,000 

Cash Discount 10% - 45,000 *10/100 = 4,500 

Paid by Bank 50% - 40,500 *50/100 = 20,250 

By Cash 20% - 20,250 *20/100 = 4,050 

 

     

3. Bought goods worth Rs. 60,000 from Prashant at 7.5% Trade Discount and Half amount paid by cash Calculation: 

Trade Discount 7.5% - 60,000 *7.5/100 = 4,500 

Half amount paid by cash - 55,500/2 = 27,750 

 

     

7. Sold goods worth Rs 90,000 to Ranvir on credit at 10% Trade Discount Calculation: 

Trade Discount 10% - 90,000 *10/100 = 9,000 

 

18. Purchased computer worth Rs. 80,000 from Reliance Company by cheque at 28% GST Calculation: 

GST 28% - 80,000 *28/100 = 22,400 

CGST 14% - 80,000 *14/100 =11,200 

SGST 14% - 80,000 *14/100 =11,200 

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. 

 

Chapter 4, Ledger Solution

JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF NINA GENERAL STORES