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
Spet 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 are 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 become insolvent and recovered only 50 paise paid in a rupee as final settlement from him. Cash is receiving by business therefore cash account is shown on debit side and Sanjay is the Giver therefore Sanjay account is credited But Sanjay is able to 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

Conclusion:

In this financial overview, key transactions unfold:

A strategic sale of 1,000 shares with 1% brokerage shows financial finesse.

Different purchases from suppliers like Ashish & Co. and Prakash & Co., highlighting different purchasing strategies.

Operational expenses for advertising, printing and stationery reflect the balance between advertising and business maintenance.

Strategic payments for transport charges with emphasis on compliance with taxation norms.

Buy from Vikram & Sons with immediate partial payment, demonstrate liquidity management.

Strategic discount negotiations with Prakash & Co. reflect prudent cost optimization.

A mix of invoicing and product returns with Sanjay, in an unfortunate bankruptcy situation with partial recovery.

Journalise the following transactions in the books of Dhoni Auto Cars Centre.

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.