Question

Question 33.
Record the following transactions in the Journal of Ashoka Furniture Traders:

Answer 1

Answer:

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Answer 2

Journal Entries for the given transactions

Explanation:

                                     In The Books of Ashoka Traders

Journal Entries:

1.1.18    Cash A/c      Dr. Rs.50,000

                To Capital A/c   Rs.50,000

  (Being capital introduced into business)

2.1.18    Bank A/c   Dr. Rs.3,50,000

                 To Capital A/c   Rs.3,50,000

  (Being money transferred into Bank A/c from Savings A/c)

10.1.18    Machinery A/c   Dr. Rs.1,00,000

             Input IGST A/c   Dr. Rs.12,000

                    To Capital A/c      Rs.15,000

                    To Bank A/c          Rs.97,000

    (Being Machinery purchased via cheque and an old machinery worth Rs.15,000 purchased and GST Paid @12%)

15.1.18  Machinery A/c    Dr. Rs.2,000

               To Cash A/c              Rs.2,000

 (Being installation charges capitalized to machinery A/c)

20.1.18  Purchases A/c    Dr. Rs.18,000

           Input CGST A/c   Dr. Rs.1,080

           Input SGST A/c   Dr. Rs.1,080

                To Singh & Co.         Rs.20,160

 (Being timber purchased on credit and GST paid @6% each with trade discount@10%)

25.1.18  Furniture A/c    Dr. Rs.5,000

                To Purchases A/c   Rs.5,000

 (Being timber used for furnishing office)

31.1.18   Rakesh A/c    Dr. Rs.10,080

                To CGST Payable A/c   Rs.540

                To SGST Payable A/c    Rs.540

                To Sales A/c                   Rs.9,000

 (Being goods sold to Rakesh @10% trade discount and GST @6% each charged)

31.1.18    Furniture A/c    Dr. Rs.500

            Input CGST A/c  Dr.Rs.30

            Input SGST A/c   Dr. Rs.30

                    To Rakesh A/c          Rs.560

 (Being old furniture taken from Rakesh and GST paid @6% each)

10.2.18    Singh & Co. A/c   Dr. Rs.19,000

                       To Discount Received A/c   Rs.1,180

                       To Bank A/c                           Rs.19,000

  (Being payment made to Singh & Co. in full settlement and discount received)

15.2.18    Cash A/c                     Dr. Rs.9,000

              Discount Allowed A/c Dr. Rs.520

                           To Rakesh A/c                 Rs.9520

 (Being payment received from Rakesh in full settlement and discount allowed)

*Notes: Total amount due from Rakesh             Rs.10,080

        Less: Old furniture taken from Rakesh     (Rs.560)

                                                                                                               

              Net Amount due from Rakesh               Rs.9,520

         Less: Amount received from Rakesh         (Rs.9,000)

                                                                                                                 

         Discount allowed to Rakesh                        Rs.520

                                                                                                                       

20.2.18      Wages A/c       Dr.Rs.15,000

                           To Cash A/c      Rs.15,000

         (Being Wages paid in cash)

25.2.18       Rent A/c        Dr. Rs.5,000

                        To Bank A/c       Rs.5,000

               (Being Rent paid via cheque)

*Notes: It has been assumed that GST is not applicable on the Rent paid to landlord since the question is silent on the same.

If the question had mentioned about applicability of GST on all transactions then the entry would have been as follows:

                       Rent A/c  Dr. Rs.5000

                       Input CGST A/c Dr. Rs.300

                       Input SGST A/c   Dr. Rs.300

                                   To Bank A/c           Rs.5600

                 (Being rent paid via cheque and GST input credit claimed)