JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF VARUN

2018 Oct.  

1. Purchased Machinery of Rs. 95,000 and paid Rs. 5,000 for Freight. 
3. Purchased goods for Rs. 1,50,000 and amount paid by Bank. 
6. Purchased Laptop from Nagesh & Co. worth Rs. 1,80,000 @18% GST. 
10. Paid into Bank of Baroda Rs. 70,000. 
12. Paid for Rent Rs. 4,000 and Commission Rs. 3,000. 
15. Bought goods from Tushar Company Ltd. Rs. 1,20,000 at 12% GST and paid 1/2 amount by RTGS. 
16. Cash purchases Rs. 50,000 amount paid by Cheque.  
20. Invoiced goods to Satish Rs. 80,000 at 12% GST and amount received by cheque. 
27. Mrs. Varsha bought goods from us Rs. 90,000 at 12% Trade Discount. 
28. Purchased goods from Abhijeet & Sons Rs. 1,50,000 at 18% GST. 
30. Paid to Abhijeet & Sons and received 10% Cash Discount by cheque. 
31. Paid for Advertisement Rs. 8,000 and Brokerage Rs. 12,000. 

Solution: 

 

In the books of Varun. 

Oct, 

1 
2018 

Machinery A/c        Dr.  
Freight A/c           Dr.    
            To Cash A/c 
[Being purchased machinery and paid for freight] 

 

95,000 
5,000 

 
 
1,00,000 

3 

Purchase A/c          Dr.  
            To Bank A/c  
[Being purchased goods and paid by bank] 

 

1,50,000 

 
1,50,000 
 

6 

Laptop A/c             Dr.  
Input CGST 9%      Dr.   
Input SGST             Dr.  
           To Cash A/c  
[Being purchased laptop at 18% GST] 

 

180000 
16,200 

 
 
2,12,400 

10 

Bank of Baroda A/c Dr. 
          To Cash A/c  
[Being paid cash into Bank of Baroda] 

 

70,000 

 
70,000 

12 

Rent A/c                 Dr.  
Commission A/c     Dr.  
          To Cash A/c 
[Being Rent & commission paid] 

 

4,000 
3,000 

 
 
7,000 

15 

Purchase A/c          Dr.  
Input CGST 6%       Dr. 
Input SGST 6%       Dr.  
         To Cash A/c 
         To Bank A/c 
[Being purchased goods at 12%GST and half amount paid by RTGS] 

 

120000 
7,200 
7,200 
 

 
 
 
67,200 
67,200 

16 

Purchase A/c          Dr.  
         To Bank A/c  
[Being purchased cash and paid by bank] 

 

50,000 

 
50,000 


20 

Bank A/c                 Dr. 
            To Sale A/c 
            To Output CGST 6% 
            To Output SGST 6% 
[Being sold goods at12% GST and received by cheque 

 

89,600 

 
80,000 
4,800 
4,800 

25 

Telephone A/c         Dr. 
            To Cash A/c 
[Being telephone charges paid] 

 

90,000 

 
90,000 

27 

Cash A/c                 Dr. 
            To Sales A/c  
[Being sold goods] 

 

79,200 

 
79,200 

28 

Purchase A/c          Dr. 
            To Cash A/c  
            To Output CGST 9% 
            To Output SGST 9% 
[Being purchased goods at 18% GST from Abhijeet & Sons] 

 

1,77,000 

 
1,50,000 
13,500 
13,500 

30 

Abhijeet & Sons A/c Dr. 
          To Discount received  
          To Cash A/c 
[Being paid to Abhijeet & Sons by cheque at 10% Cash discount] 

 

1,77,000 

 
17,700 
1,59,300 

31 

Advertisement A/c  Dr. 
Brokerage A/c        Dr. 
            To Cash A/c 
[Being paid for advertisement and brokerage]   

 

8,000 
12,000 

 
 
20,000 

 

Explanatory Notes: 

1. Purchased Machinery and paid Freight. Machinery and Freight account Debited to debit side because Machinery is an asset, Debit What Comes In and Freight is an expense, Debit all expense and losses. and on credit side Cash account Credit What Goes Out. 

 

15. Bought goods from Tushar Company Ltd. at 12% GST and paid 1/2 amount by RTGS. Purchase account debited because Debit the Receiver and CGST and SGST is an expense therefore it is also debited to debit side. On Credit Side Bank and Cash account because half amount is paid by RTGS [Real Time Gross Settlement] which refer to Fund Transfer System. 

 

Calculation: 

 

6. Purchased Laptop from Nagesh & Co. worth Rs. 1,80,000 @18% GST Calculation. 

GST 18% - 1,80,000 *18/100 = 32,400 

CGST 9% - 1,80,000 *9/100 = 16,200 

SGST 9% - 1,80,000 *9/100 = 16,200 

 

 

15. Bought goods from Tushar Company Ltd. Rs. 1,20,000 at 12% GST and paid 1/2 amount by RTGS Calculation. 

GST 12% - 1,20,000 *12/100 = 14,400 

CGST 6% - 1,20,000 *6/100 = 7,200 

SGST 6% - 1,20,000 *6/100 = 7,200 

Bank is paying half of the amount - 1,34,400/2 = 67,200 

 

 

20. Invoiced goods to satish Rs. 80,000 at 12% GST and amount received by cheque Calculation. 

GST 12% - 80,000 *12/100 = 9,600 

CGST 6% - 80,000 *6/100 = 4,800 

SGST 6% - 80,000 *6/100 = 4,800 

 

 

27. Mrs. Varsha bought goods from us Rs. 90,000 at 12% Trade Discount Calculation. 

12% Trade Discount - 90,000 *12/100 = 10,800 

 

 

28. Purchased goods from Abhijeet & Sons Rs. 1,50,000 at 18% GST Calculation. 

GST 18% - 1,50,000 *18/100 = 27,000 

CGST 9% - 1,50,000 *9/100 = 13,500 

SGST 9% - 1,50,000 *9/100 = 13,500 

 

 

30. Paid to Abhijeet & Sons and received 10% Cash Discount by cheque Calculation. 

10% Cash Discount - 1,77,000 *10/100 = 17,700 

 

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 VARUN



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