Question 30.
Journalise the following transactions in the books of Mohan Singh, Delhi:
(i) Raj of Alwar, Rajasthan who owed Mohan Singh ₹ 25,000 became insolvent and received 60 paise in a rupee as full and final settlement.
(ii) Mohan Singh owes to his landlord ₹ 10,000 as rent.
(iii) Charge depreciation of 10% on furniture costing ₹ 50,000.
(iv) Salaries due to employees ₹ 20,000.
(v) Sold to Sunil goods in cash of ₹ 10,000 less 10% trade discount plus CGST and SGST @ 6% each and received a net of ₹ 8,500.
(vi) Provided interest on capital of ₹ 1,00,000 @ 10% per annum.
(vii) Goods lost in theft – ₹ 5,000, which were purchased paying IGST @ 12% from Alwar, Rajasthan.
Hint:
(vii) Loss of Stock by Theft A/c – ₹ 5,600
To Purchase A/c – ₹ 5,000
To Input IGST A/c – ₹ 600
Answers
Answer:
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Journal Entries for the given transactions
Explanation:
In The Books of Mohan Singh
Journal Entries:
i) Raj A/c Dr.Rs.15000
To Cash A/c Rs.15000
(Being payment received from Raj @60% of amount due as final settlement)
ii) Rent A/c Dr. Rs.10,000
To Rent O/s Rs.10,000
(Being rent due to landlord)
iii) Depreciation A/c Dr. Rs.5000
To Furniture A/c Rs.5000
(Being furniture depreciated @10%)
iv) Salary A/c Dr. Rs.20,000
To Salary O/s A/c Rs.20,000
(Being salary due to employees)
v) Cash A/c Dr. Rs.8500
Discount Allowed A/c Rs.1580
To CGST Payable A/c Rs.540
To SGST Payable A/c Rs.540
To Sales A/c Rs.9000
(Being goods sold to Sunil for cash and Trade discount allowed @10% and GST charged @6% and net amount received)
vi) Interest on capital A/c Dr. Rs.10,000
To Capital A/c Rs.10,000
(Being interest on capital provided @10% p.a)
vii) Abnormal Loss A/c Dr.Rs.5,600
To Purchases A/c Rs.5000
To Input IGST A/c Rs.600
(Being goods lost due to theft and Input IGST reversed)