Question

Question 31.
Pass Journal entries in the books of Puneet, Delhi for the following:
(i) Received an order from Karan & Co. for supply of goods of ₹ 50,000.
(ii) Received an order from AK & Co. for goods of ₹ 1,00,000 along with a cheque for ₹ 25,000 as advance.
(iii) Paid to staff ₹ 40,000 against outstanding salary of ₹ 60,000.
(iv) Sold goods to Bharat, Kaithal (Haryana) of ₹ 10,000 plus IGST @ 12% out of which 1/5th were returned being defective.
(v) Cheque of ₹ 20,000 issued by Feroz was dishonoured.
(vi) Received 40 paise in a rupee from Feroz against the above dues.
(vii) Received a cheque of ₹ 25,000 from Mohan after banking hours.
(viii) Purchased goods from Barun of Chandigarh of ₹ 10,000 plus IGST @ 12% and sold them to Arun of Shimla (HP) at ₹ 22,400, including IGST @ 12%.
(ix) Arun returned goods of ₹ 6,720, including IGST which were returned to Barun.
(x) ABC & Co. purchased 10 TV sets @ 20,000 per set and paid IGST @ 12%. It sold all the sets @ 25,000 per set plus CGST and SGST @ 6% each.
(xi) Paid insurance of ₹ 12,000 plus CGST and SGST @ 6% each for a period of one year.
(xii) Sold personal car for ₹ 1,00,000 and invested the amount in the firm.
(xiii) Goods costing ₹ 1,00,000 were destroyed in fire. Insurance company admitted the claim for ₹ 75,000. These goods were purchased within Delhi.
(xiv) Purchased machinery for ₹ 56,000 including IGST of ₹ 6,000 and paid cartage thereon ₹ 5,000 and installation charges ₹10,000.
(xv) Goods costing ₹ 40,000 sold to Mr. X at a profit of 20% on sales less 10% Trade Discount plus CGST and SGST @ 6% each and received a cheque under 2% cash discount.
(xvi) Purchased machinery from New Machinery House for ₹ 50,000 and paid it by means of a bank draft purchased from bank. Paid charges ₹ 500.

Answer 1

Journal Entries for the given transactions

Explanation:

                                In the Books of Puneet

Journal entries :

i) No Accounting entry is made for order placed by customer.

ii) Bank A/c          Dr. Rs. 25,000

       To Advance against Sale A/c      Rs.25,000

(Being advance received against sale)

iii) Salary O/s A/c        Dr. Rs.40,000

           To Cash A/c              Rs.40,000

(Being outstanding salary paid)

iv) Bharat A/c                Dr. Rs.8960

Sales return A/c          Dr. Rs. 2240

        To IGST Payable A/c     Rs. 1200

        To Sales A/c                   Rs. 10,000

(Being goods sold to Bharat with IGST @12% and 1/5th goods returned)

v) Firoz A/c      Dr. Rs.20,000

        To Bank A/c      Rs.20,000

(Being Cheque from Firoz dishonoured)

vi) Bank A/c   Dr. Rs,8,000

        To Firoz A/c     Rs.8,000

(Being 40% of amount due from Firoz recovered)

vii) No Accounting entry is made for cheque received after Banking hours.

viii) Purchases A/c       Dr. Rs.10,000

     Input IGST A/c       Dr. Rs.1200

          To Barun A/c                  Rs.11200

(Being Goods purchased from Barun and IGST @12% paid)

      Arun A/c         Dr. Rs.22400

          To IGST Payable A/c       Rs.2400

          To Sales A/c                     Rs.20,000

(Being Goods sold and IGST @12% charged)

ix) Sales Return A/c       Dr. Rs.6720

            To Arun A/c                 Rs.6720

(Being goods returned by Arun)

         IGST Payable A/c Dr. Rs.720          $( 2400\times \dfrac{6720}{22400})$

                     To Arun A/c       Rs.720

(Being IGST charged from Arun reversed)

x) ABC & Co. A/c         Dr. Rs.2,24,000

          To IGST Payable A/c      Rs.24000

          To Sales A/c                    Rs.200000

(Being TVs sold to ABC & Co. @20,000 per unit and IGST @12% charged)

*No Entry will be made for the sale of TV sets by ABC & Co. since we are in the books of Puneet.

xi) Insurance premium A/c        Dr. Rs. 13,440

               To Cash A/c                         Rs.13440

(Being Insurance premium paid and GST paid)

*Being an individual,Puneet cannot claim GST on Insurance premium paid.

xii) Cash A/c       Dr. Rs.1,00,000

          To Capital A/c        Rs.1,00,000

(Being personal car sold and amount invested in business)

xiii) Abnormal Loss A/c     Dr. Rs.25,000

     Insurance claim A/c      Dr. Rs.75,000

              To Purchases A/c            Rs. 1,00,000

(Being goods destroyed by fire and insurance claim received)

xiv) Machinery A/c       Dr. Rs.65000

     Input IGST A/c        Dr. 6,000

              To Cash A/c                Rs.71,000

(Being machinery purchased and IGST Paid)

xv) Mr.X A/c         Dr. Rs.47416

Discount Allowed A/c Dr. Rs. 968

           To CGST Payable A/c           2592

            To SGST Payable A/c           2592

            To Sales A/c                          43,200

(Being goods sold to Mr.X and CGST and SGST charged @6% each)

                                  (See W.N 1)

xvi) Machinery A/c      Dr. Rs.50,000

           To Bank O/D A/c           Rs.50,000

           To P&L A/c                      Rs.500

(Being Machinery purchased and Bank charges written off)

Working Notes:

1) Calculation of Amount to be charged from Mr.X

Cost of goods sold                                Rs.40,000

Add: Profit @20%                                   Rs.8000

                                                                                       

                                                               Rs.48,000

Less: Trade discount@10%                     (Rs.4800)

                                                                                               

                                                                Rs.43200

Add: CGST @6%                                      Rs.2592

        SGST @6%                                      Rs.2592

                                                                                                   

                                                                 Rs.48384

Less: Cash discount @2%                       (Rs.968)

                                                                                                   

Amount to be charged                         Rs.47416

from Mr.X