Question

3 Journalice the following transactions in the books of
Ashok General
Stores​

Answer 1

Journalise the given transactions in the books of Ashok General Stores.

Answer: Refer the attachment.

Explanation of Journal entries:

1. Received Rs. 5,000 from Ram on behalf of Bharat.

Cash account debit to Ram account, reason being cash comes into Business and Ram pays the cash on behalf of Bharat.

4. Purchased goods for cash Rs. 55,000.

Purchases account is debited to cash account, reason being goods come in the business and cash goes out of the business.

8. Paid for Salary Rs. 8,000

Salary is an expense for business so hence salary account is debited. Cash goes out of the business so cash account is credited.

12. Purchased goods from Ganesh Rs.30,000 on credit.

Purchases account is debited as we debit the receiver. Ganesh's account is credited as payment is to be done in future, and not immediately.

17. Sold goods to Mrs. Neha Rs.60,000 on credit.

Almost Same as above entry, here Neha's account is debited.

20. Purchased Machinery of Rs.80,000 @12% GST and amount paid by cheque.

As machinery is an asset, it is debited. (as per golden rule for real account.) 12% GST is divided into two parts, CGST and SGST. Both will be debited, as they are expenses. Bank account is credited as cash goes out of the business.

25. Paid to SG & Sons by cheque Rs.30,000.

SG & Sons account is debited whereas bank account is credited.

28. Received Commission Rs.10,000 from Ganesh.

Commission being an expense, it is debited. Ganesh account is credited (as per golden rule for personal accounts.)