JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF DHONI AUTO CARS CENTRE

2018 Nov,  

1. Sold 1,000 shares for Rs 100 each and paid Brokerage @1% and amount credited to our account. 
4. Purchased goods from Ashish & Co. of 2,00,000. 
8. Paid for advertisement Rs. 30,000 to Times of India. 
10. Paid for Printing and stationery Rs. 7,000.  
12. Purchased goods from Prakash & Co. 1,50,000 @18% GST. 
15. Paid for Transport charges Rs. 10,000 @12% GST. 
20. Purchased goods from Vikram & Sons Rs. 1,20,000 @18% GST and paid half the amount immediately. 
25. Paid to Prakash & Co. less 10% discount. 
30. Invoiced Goods to Sanjay Rs. 60,000. 
31. Sanjay returned goods of Rs. 10,000. 
31. Sanjay became insolvent and recovered only 50 paise in a rupee as final settlement from him. 

Solution:

 

In the books of Dhoni Auto Cars Centre. 

DATE	PARTICULARS	L/F	DEBIT	CREDIT
Sept 1  2018	Bank A/c                  Dr.  Brokerage A/c         Dr.             To Shares A/c             To cash A/c  [Being Sold Shares and paid Brokerage]		1,00,000  1,000	1,00,000  1,000
4	Purchase A/c           Dr.             To Ashish & Co. A/c  [Being purchased goods from Ashish]		2,00,000	2,00,000
6	Virat & Co. A/c        Dr.            To sales A/c   [Being Sold goods to Virat & Co.]		1,50,000	1,50,000
8	Advertisement A/c   Dr.            To cash A/c   [Being Paid for Advertisement to Times of India]		30,000	30,000
10	Printing & Stationery A/c Dr.            To Cash A/c  [Being paid for Printing & Stationery]		7,000	7,000

 

12	Purchase A/c                   Dr.  Input CGST 9% A/c         Dr.  Input SGST 9% A/c         Dr.             To Prakash & Co. A/c  [Being purchased goods from pakash & co. At 18% GST]		1,50,000  13,500  13,500	1,77,000
15	Transport Charges A/c   Dr.  Input CGST 6% A/c         Dr.  Input SGST 6% A/c        Dr.              To Cash A/c   [Being paid for Transport charges at 12%]		10,000  600  600	11,200
20	Purchase A/c           Dr.  Input CGST 9% A/c      Dr.  Input SGST 9% A/c      Dr.              To Cash A/c               To Vikram & Sons A/c  [Being Purchased goods from Vikram & Sons @18% GST and 1/2 amount paid immediately]		1,20,000  11,400  11,400	71,400  71,400
25	Prakash & Co. A/c     Dr.            To Cash A/c            To Discount Received  A/c  [Being paid to Prakash & Co. Less 10% Discount]		1,77,000	1,59,300  17,700
30	Sanjay A/c                      Dr.             To Sales A/c   [Being sold goods to Sanjay]		60,000	60,000
31	Sales Return A/c           Dr.             To Sanjay A/c   [Being Sanjay Return goods]		10,000	10,000
31	Cash A/c                        Dr.  Bad Debt A/c                Dr.            To Sanjay A/c   [Being amount irrecoverable from Sanjay and Balance due from him written off as bad debts]		25,000  25,000	50,000

 

Explanatory Notes: 

1. Sold Shares for Rs.100 each and paid brokerage @1% and amount credited to our account. Bank account & Brokerage account Debit because Bank is receiving, and Brokerage is an expense therefore both the account is debited to Debit side. On credit side share and Cash account because share is sold, and brokerage paid by cash. 

 

30. Invoiced Goods to Sanjay. Invoiced Goods means Goods are Sold to Sanjay therefore Sanjay account is credited, and cash is received therefore Cash account is credited. [Refer Personal account Formula]. 

 

31. Sanjay became insolvent and recovered only 50 paise paid in a rupee as final settlement from him. Cash is received by business therefore cash account is shown on debit side and Sanjay is the Giver therefore Sanjay account is credited But Sanjay can pay only 50 paise which means he is paying half of the amount. And the remaining amount is a Bad debt for the Business therefore shown as Bad debt account on debit side.   

 

Calculation: 

1. Sold 1,000 shares for Rs 100 each and paid Brokerage @1% and amount credited to our account Calculation: 

1,000 *100 = 1,00,000 

1,00,000 *1/100 = 1,000 

 

 

12. Purchased goods from Prakash & Co. 1,50,000 @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 

 

 

15. Paid for Transport charges Rs. 10,000 @12% GST Calculation: 

GST @12% - 10,000 *12/100 = 1,200 

CGST @6% - 10,000 *6/100 = 600 

SGST @6% - 10,000 *6/100 = 600 

 

20. Purchased goods from Vikram & Sons Rs. 1,20,000 @18% GST and paid half the amount immediately Calculation: 

GST @18% - 1,20,000 *18/100 = 21,600 

CGST @9% - 1,20,000 *9/100 = 10,800 

SGST @9% - 1,20,000 *9/100 = 10,800 

 

25. Paid to Prakash & Co. less 10% discount Calculation: 

10% 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. 

JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF DHONI AUTO CARS CENTRE