Question 29.
Journalise the following in the books of Amit Saini, Gurugram (Haryana):
(i) Goods of ₹ 5,000 were used by him for domestic purpose.
(ii) ₹ 2,000 due from Sohan became bad debts.
(iii) Goods of ₹ 6,000 were destroyed by fire and were not insured.
(iv) Paid ₹ 4,000 in cash as wages on installation of machine. GST is not to be levied.
(v) Sold goods to Arjun of Delhi of list price ₹ 20,000. Trade discount @ 10% and cash discount of 5% was allowed.
He paid the amount on the same day and availed the cash discount.
(vi) Received cash for a bad debt written off last year ₹ 2,000.
(vii) Goods of ₹ 1,000 given as charity.
(viii) Received ₹ 9,750 from Ramesh in full settlement of his account of ₹ 10,000.
(ix) Paid rent in advance ₹ 4,000.
CGST and SGST is to be levied on intra-state sale @ 6% each and IGST @ 12% on inter-state sale.
Answers
Journal Entries for the given transactions
Explanation:
In the Books of Amit Saini
Journal Entries:
i) Drawings A/c Dr.Rs.5,000
To Purchases A/c Rs.5,000
(Being goods used for personal purposes)
ii) Bad Debts A/c Dr. Rs.2000
To Sohan A/c Rs.2000
(Being bad debts recognised)
iii) Loss by fire A/c Dr. Rs.6,000
To Purchases A/c Rs.6,000
(Being goods destroyed by fire)
iv) Machinery A/c Dr. Rs.4,000
To Cash A/c Rs.4,000
(Being wages paid for installation of machinery)
v) Cash A/c Dr. Rs.19,152
Discount Allowed A/c Dr. Rs.1,008
To IGST Payable A/c Rs.2,160
To Sales A/c Rs.18,000
(Being goods sold to Arjun for cash @10% trade discount,IGST charged @12% and cash discount @5% provided)
vi) Cash A/c Dr. Rs.2,000
To Bad debts recovered A/c Rs.2,000
(Being Bad debts of previous year recovered)
vii) Charity A/c Dr. Rs.1,000
To Purchases A/c Rs.1,000
(Being goods donated to charity)
viii) Cash A/c Dr. Rs.9,750
Discount Allowed A/c Dr. Rs.250
To Ramesh A/c Rs.10,000
(Being cash received from Ramesh in full settlement and discount allowed)
ix) Prepaid Rent A/c Dr. Rs.4,000
To Cash A/c Rs.4,000
(Being rent paid in advance)