Journalize the following transactions in the books of Hero Enterprises

Balance on 1st April 2019 

Cash at Bank Rs.80,000, Sundry Debtors Ram Rs.20,000, Rahim Rs.30,000, Stock Rs.55,000, Building Rs.1,50,000. 
Credit Balance on 1st April 2019 
Sundry Creditors Swapna Rs.20,000, Rohit Rs.30,00, Bank Loan Rs.50,000. 

2019 April  

1. Purchased goods worth Rs.1,50,000 from Prashant & Co. less 10% T.D. 
          
4. Sold goods to Mr. Amit Sharma Rs.70,000 at 10% T.D on credit. 
          
9. Purchased goods for Cash Rs. 2,00,000 @28% GST amount paid by NEFT. 
         
12. Sold goods to Aditya Ray of Rs. 90,000 @28% GST. 
         
15. paid for Rent Rs. 5,000 and Salary Rs. 18,000. 
         
17. paid for proprietor's House rent Rs. 12,000. 
         
20. Sold half of the goods purchased on 9th April at 20% Profit and 28% GST. 
        
 25. Paid for Wages Rs. 1,500. 
        
 25. Purchased Furniture Rs. 1,80,000 @12% GST and amount paid by RTGS. 
         
28. Sold an old Furniture of Rs. 20,000 for Rs. 12,000. 
         
30. Sold share of Rs. 10,000 for 15,000 and amount received by cheque. 

 

  Solution: 

In the books of Hero Enterprises.

DATE	PARTICULARS	L/F	DEBIT	CREDIT
2011 April 1	Cash at Bank A/c             Dr.  Sundry Debtors Ram A/c    Dr.  Rahim A/c                        Dr.  Stock A/c                         Dr.  Building A/c                    Dr.             To Sundry Creditors                    Swapna A/c             To Rohit A/c             To Bank Loan A/c  [Being Balance brought forward from last year]		80,000  20,000  30,000  55,000  1,50,000	20,000    30,000  50,000
1	Purchase A/c                  Dr.            To Prashant & Co. A/c  [Being Purchased goods at 10% T.D]		1,35,000	1,35,000
4	Amit Sharma A/c                Dr.           To Sales A/c   [Being sold goods to Mr. Amit Sharma on credit at 10% T.D]		63,000	63,000
9	Purchase A/c                       Dr.  Input CGST 14%                Dr.    Input SGST 14%                  Dr.           To Bank A/c  [Being purchased goods @28% GST and paid by NEFT]		2,00,000  28,000  28,000	2,56,000
12	Aditya Ray A/c                    Dr.          To Sales A/c          To Output CGST 14%          To Output SGST 14%  [Being sold goods to Aditya Ray @28% GST]		1,52,000	90,000  12,600  12,600
15	Rent A/c                              Dr.  Salary A/c                         Dr.           To Cash A/c   [Being paid rent and salary]		5,000  18,000	23,000

17	Drawings A/c        Dr.            To Cash A/c   [Being paid for proprietor's house rent]		12,000	12,000
20	Cash A/c                            Dr.  Profit A/c                          Dr.             To Sales A/c             To Output CGST 14%             To Output SGST 14%  [Being sold goods at 20% Profit and 28% GST]		1,33,000  20,000	1,20,00016,800  16,800
25	Wages A/c                         Dr.              To Cash A/c   [Being Paid Wages]		1,500	1,500
25	Furniture A/c                     Dr.  Input CGST 14%                Dr.  Input SGST 14%                Dr.            To Bank A/c   [Being purchased furniture at 28% GST by RTGS]		1,80,000  25,200  25,200	2,30,400
28	Cash A/c                             Dr.  Loss A/c                              Dr.            To Furniture A/c   [Being Sold an old Furniture]		12,000  8,000	15,000
30	Bank A/c                           Dr.  Profit A/c                          Dr.             To Shares A/c   [Being sold shares of Rs.10,000 for 15,000 and amount received by cheque]		10,000  5,000	15,000

 
Explanatory Notes: 

Calculation: 

1. Purchased goods worth Rs.1,50,000 from Prashant & Co. less 10% T.D Calculation: 
10% T.D. -  1,50,000 *10/100 = 15,000 

 
4. Sold goods to Mr. Amit Sharma Rs.70,000 at 10% T.D on credit Calculation: 
10% T.D. -  70,000 *10/100 = 7,000 

 
9. Purchased goods for Cash Rs. 2,00,000 @28% GST amount paid by NEFT Calculation: 
GST 28% - 2,00,000 *28/100 = 56,000 
CGST 14% - 2,00,000 *14/100 = 28,000 
SGST 14% - 2,00,000 *14/100 = 28,000 

 
12. Sold goods to Aditya RAy of Rs. 90,000 @28% GST Calculation: 
GST 28% - 90,000 *28/100 = 25,200 
CGST 14% - 90,000 *14/100 = 12,600 
SGST 14% - 90,000 *14/100 = 12,600 

 
20. Sold half of the goods purchased on 9th April at 20% Profit and 28% GST Calculation: 
20% Profit = 1,00,000 *20/100 = 20,000 
GST 28% - 1,20,000 *28/100 = 33,600 
CGST 14% - 1,20,000 *14/100 = 16,800 
SGST 14% - 1,20,000 *14/100 = 16,800 

 
25. Paid for Wages Rs. 1,500 Calculation: 
GST 12% - 1,80,000 *12/100 = 21,600 
CGST 6% - 1,80,000 *6/100 = 10,800 
SGST 6% - 1,80,000 *6/100 = 10,800 

Conclusion: As of April 1, 2019, the financial landscape exhibited a robust position with cash at banks, various lenders, stocks and buildings. At the same time, the credit balance includes various creditors and bank loans. Major transactions in April showed strategic financial maneuvers:

The purchase and sale of goods, including prudent trade discounts, reflects price optimization strategies.A mix of credit and cash sales following GST norms for taxation. Ensuring the smooth running of the business, including operating expenses, rent, salaries and wages. A judicious mix including acquisition and disposal of property, buying furniture and selling old. Diversify financial instruments including selling shares for profitable returns. 

Journalize the following transactions in the books of Hero Enterprises.

 

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