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JOURNAL

The journal is a book of original entry in which the transactions are recorded as and when they
occur; in the chronological order from where they are posted to the ledger. A Journal is a
chronological record of financial transactions of a business.

Features of journal:
1. Book of original entry as the transactions are first recorded in journal.
2. Transactions recorded in chronological order i.e. date-wise.
3. Journal precedes ledger; subordinate to ledger.
4. The transactions are supported by narration; summary of actual transaction.
5. The double entry rules are followed while journalizing the transactions.
6. It is also called a day book or daily book.

ADVANTAGES OF JOURNAL LIMITATIONS OF JOURNAL

a) Date-wise and explained transactions a) Time consuming Process
b) Ensures Double entry rules are followed b) Journal is a long and cumbersome book
c) Detection of arithmetical errors c) Difficult to locate transactions
d) Provides source of data for financial d) Not possible to ascertain balance of accounts
purposes
e) Provides evidence of transactions
f) Division of labor

Format of Journal

DATE PARTICULARS L.F DEBIT AMOUNT CREDIT AMOUNT

₹ ₹
--/--/-- A/c 1 Dr. -- XX
To A/c 2 XX
(-------Narration------)

✓ Date column: Under this column, the date on which the transaction is entered is recorded. The
year and month are written once, till they change.
✓ Particular column: Under this column, first the names of the accounts to be debited, then the
names of the accounts to be credited and lastly, the narration (i.e. a brief explanation of the
transaction) are entered.
✓ L.F: Ledger Folio column: Under this column, the ledger page number containing the relevant
account is entered at the time of posting.
✓ Debit amount column: Under this column, the amount to be debited is entered.
✓ Credit amount column: Under this column, the amount to be credited is entered.

Note: Except the L.F. column, all other columns are recorded at the time of journalizing. The L.F.
Column is recorded at the time of posting.

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Journalizing Process:

The process of recording the transaction in journal book is called Journalizing. The form and
manner in which a transaction is recorded in the journal is called journal entry.

DOUBLE ENTRY SYSTEM OF BOOK-KEEPING

Double Entry system of Book-keeping refers to a system of accounting under which both the aspects
(i.e. debit or credit) of every transaction are recorded in the accounts involved.
Account: The individual record of a person or thing or an item of income or an expense is called an
account.
Dual Aspect: Two-fold aspect of a transaction is called dual aspect or duality of a transaction. Every
debit has equal amount of credit. So, the total of all debits must be equal to the total of all credits.
The entry made for each transaction is composed of two parts- one for debit and another for credit.

TYPES OF ACCOUNTS

Personal Accounts Impersonal Accounts

Natural Artificial Representative Real Nominal

Personal Personal Personal Account Account
Account Account Account

Rules for Journalizing (Traditional approach)

TYPE OF ACCOUNT DEBIT CREDIT

PERSONAL THE RECEIVER THE GIVER
REAL WHAT COMES IN WHAT GOES OUT
NOMINAL ALL EXPENSES/LOSSES ALL INCOMES/PROFITS

Rules for Journalizing (Modern approach)

TYPE OF ACCOUNT DEBIT CREDIT

ASSET INCREASE DECREASE
LIABILITY DECREASE INCREASE
CAPITAL DECREASE INCREASE
INCOME/PROFIT DECREASE INCREASE
EXPENSE/LOSS INCREASE DECREASE

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COMPOUND ENTRY

Meaning: When more than two accounts are involved in a transaction and the transaction is
recorded by means of a single journal entry instead of passing several journal entries; such
single journal entry is termed as ‘Compound Journal Entry’.

How to Record: It may be recorded in the following three ways:

(a) By debiting one account and crediting two or more accounts; or
(b) By debiting two or more accounts and crediting one account; or
(c) By debiting several accounts and crediting several accounts.

OPENING ENTRY

Meaning of an ‘Opening Entry’: A journal entry by means of which the balances of various
assets, liabilities and capital appearing in the balance sheet of previous accounting period are
brought forward in the books of the current accounting period, is known as ‘opening Entry’.

Method of Recording: While passing an opening entry, all assets accounts (individually) are
debited and all liabilities accounts (individually) are credited and the net worth (i.e. excess of assets
over liabilities) is credited to Proprietor’s Capital Account (in case of a proprietary concern) or
Partners’ Capital Accounts (in case of a partnership concern).

Opening journal entry is:

All Assets A/c Dr.

To All Liabilities A/c
To Capital A/c

Procedure of Posting:

The procedure of posting an opening entry is:

✓ In case of an asset- To balance b/d is recorded in the Particulars column on the debit side
✓ In case of liability/capital- By balance b/d is recorded in the Particulars column on the credit
side.

Discussion on Journalizing

1. CASH AND CREDIT TRANSACTIONS:

When cash or credit nothing is specified in a particular transaction but the name of the person is
given, it is treated as a credit transaction.
When nothing is given i.e. name of the person as well, it is treated as a cash transaction.

2. TRANSACTIONS WITH BUSINESSMAN:

There are a number of transactions taking place involving business and businessman. Most
common transactions are stated below:

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a) Introduction of Capital into business:

Cash/Bank A/c Dr.

Assets A/c Dr.
To Capital A/c

b) Withdrawal of Capital from business:

Capital A/c Dr.

To Cash/Bank A/c

c) Recurring withdrawals for day to day purposes, personal expenses:

Drawings A/c Dr.

To Cash/Bank A/c
To Purchases A/c

NOTE: Whenever goods are withdrawn by the businessman, purchases A/c is credited and not
Sales A/c as the goods are withdrawn at cost and not at sales price.

d) Interest on capital:

Interest on Capital A/c Dr.

To Capital A/c

e) Interest on Drawings:

Drawings A/c Dr.

To Interest on Drawings

3. TRANSACTIONS WITH BANK:

A lot of transactions take place b/w business and banker. A few of them are:

a) Deposit of money:

Bank A/c Dr.

To Cash A/c

b) Withdrawal of money:

Cash A/c Dr.

To bank A/c

c) Interest on money deposited:

Bank A/c Dr.

To Bank Interest

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d) Bank Charges deducted by bank;

Bank Charges A/c Dr.

To Bank A/c

4. TRANSACTIONS INVOLVING GOODS:

The main purpose of the business is the dealing in goods involving purchase and sales or
rendering of services, charity or donations etc. The accounting treatment is as follows:
a) Purchase of goods:

Purchases A/c Dr.

To Cash/Bank/Supplier A/c

b) Sale of goods:

Cash/Bank/Customer A/c Dr.

To Sales A/c

c) Charity/Donations/Sample sale in goods:

Charity/Donation/Adv A/c Dr.

To Purchases A/c

NOTE: Sales A/c is not credited as it is not a sale. Here purchases are reduced at cost.

d) Expenses on Sale/Purchase-

These expenses include carriage, freight, octroi, custom duty, commission, etc. these
expenses are debited/ booked separately and not included or adjusted within sale/purchase
A/c. Expenses at the time of purchase are recorded as inward expenses and expenses on
sales are recorded as outward expenses.

Expense inward A/c Dr.

Expense outward A/c Dr.
To Cash/bank A/c
To Creditor A/c

e) Purchase Returns:

Supplier A/c Dr.

To Purchase Return A/c

f) Sale Returns:

Sale Return A/c Dr.

To Customer A/c

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5. TREATMENT OF LOSS OF GOODS IN FIRE/ACCIDENT:

In certain cases, business may suffer loss of goods due to fire or accident or pilferage/theft. The
goods may be insured against such peril or insured. The accounting treatment depends upon the
status of the goods being insured/ uninsured:

a) Goods uninsured:

Loss by theft/fire/accident A/c Dr.

To Purchases A/c

b) Goods fully insured:

Insurance Claim/Bank A/c Dr.

To Purchases A/c

c) Good partly insured:

Insurance Claim/Bank A/c Dr.

Loss by theft/fire/accident A/c Dr.
To Purchases A/c

6. TRANSACTIONS INVOLVING FIXED ASSETS:

Fixed assets are the assets that are used by the business for considerably long period of time and
are not meant to be sold.

a) Purchase of Fixed Asset:

Fixed Asset A/c Dr.

To Cash/Bank/Creditor A/c

b) Exchange of old Asset with new Asset: the asset A/c is to be debited with only the actual
amount paid for the new Asset.

Fixed Asset A/c Dr.

To Cash/Bank A/c

c) Charging Depreciation on fixed Asset:

Depreciation A/c Dr.

To Fixed Asset A/c

d) Sale of Fixed Asset:

Cash/Bank/Debtor A/c Dr.

Loss on sale of Asset A/c Dr.
To Fixed Asset A/c
To Profit on sale of asset A/c

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NOTE: The profit/loss on sale of fixed asset is separately recorded whereas profit/loss on ordinary
goods is not booked separately. However, expense on sale/purchase of ordinary goods is shown
separately but the expenses on sale/purchase of fixed assets is adjusted within the fixed asset A/c.

e) Self-Made Fixed Asset: The business may by employing labor and using its own material
make fixed asset required for its own use.

Fixed Asset A/c Dr.

To Cash A/c
To Purchases A/c

7. TREATMENT OF DISCOUNTS:

The discount may be given/ received by the business in the form of Trade discount- discount on
quantity of goods bought or sold or Cash discount- discount on payment or receipt of amount
due.

a) Trade Discount- It is not shown in books of account although it is to be adjusted while

passing the journal entry. Only the net amount after trade discount is recorded.

Cash/Customer A/c Dr. (Gross SP- TD)

To Sales A/c

Purchases A/c Dr. (Gross PP- TD)

To Cash/Supplier

b) Cash Discount- It is allowed at the time of prompt payment on the net amount due. The
word full and final settlement is indicative of involvement of cash discount.

Cash/Bank A/c Dr.

Cash Discount allowed A/c Dr.
To Customer A/c

Supplier A/c Dr.

To Cash/Bank A/c Dr.
To Cash Discount Received A/c

c) Trade Discount and Cash Discount Simultaneously:

Where both the Discounts are simultaneously allowed or received then the cash discount
is to be arrived at after adjusting trade discount. Cash discount is only on that portion of
amount due that is paid in cash/bank.

NOTE: Trade Discount and Cash Discount is always calculated on the value before charging of
GST.

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8. TREATMENT OF INSOLVENCY:

When the person is unable to settle his debts/ liabilities as and when they fall due for payment or
when the liabilities exceed assets, the person is said to be insolvent.

a) Bad Debts:

Bad Debts A/c Dr.

To Customer A/c

b) Part Payment and Bad Debt:

Cash/Bank A/c Dr.

Bad Debt A/c Dr.
To Customer A/c

c) Bad Debts Recovered subsequently:

Cash A/c Dr.

Too Bad Debts Recovered A/c

9. TREATMENT OF EXPENSES:

a) Expenses paid:

Expense A/c Dr.

To Cash/Bank A/c

b) Expense Outstanding:

Expense A/c Dr.

To Expense Outstanding A/c

c) Expense Paid in Advance:

Prepaid Expense A/c Dr.

To Cash/Bank A/c

d) Expense paid by Third Party:

Expense A/c Dr.

To Third Party A/c

e) Expense of Third Party paid by business:

Third Party A/c Dr.

To Cash/Bank A/c

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10. TREATMENT OF INCOMES:

a) Income Received:

Cash/Bank A/c Dr.

To Income A/c

b) Income Accrued:

Income Accrued A/c Dr.

To Income A/c

c) Income Received in Advance:

Cash/Bank A/c Dr.

To Income Received in Advance A/c

d) Income Received by Third Party:

Third Party A/c Dr.

To Income A/c

e) Income of Third Party Received by business:

Cash/Bank A/c Dr.

To Third Party A/c

11. TREATMENT OF LOANS AND ADVANCES:

a) Loan Taken from Bank:

Bank A/c Dr.

To Bank Loan A/c

b) Loan Taken from Anyone else:

Cash/Bank A/c Dr.

To Loan from --- A/c

c) Advance/Loan Given to others:

Advance/Loan to --- A/c Dr.

To Cash/Bank A/c

12. TREATMENT OF ADVANCE FOR SUPPLY OF GOODS:

a) Advance for goods given:

Advance for supply of goods A/c Dr.

To Cash/Bank A/c

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b) Receipt of goods:

Purchases A/c Dr.

To Advance for supply of goods A/c

13. TREATMENT OF INCOME TAX:

a) Income Tax paid:

Drawings A/c Dr.

To Cash/Bank A/c

b) Refund of excess Tax deposited:

Cash/Bank A/c Dr.

To Capital A/c

NOTE: All the incomes and losses belong to the owner therefore Income tax is also to be borne by
him.

14. TREATMENT OF GOODS & SERVICES TAX (GST):

Central Goods and Services Tax (CGST) & State Goods and Services Tax (SGST)
CGST and SGST are levied on intra-state (within the state) supply of goods and/or services or
both. CGST and SGST is levied at half the prescribed rate of GST each. For example, if
prescribed rate is 12%, CGST and SGST will be levied @ 6% each.

Integrated Goods and Services Tax (IGST)

IGST is levied on inter-state (outside the state or from one state to another) supply of goods
and/or services or both. It is levied at the prescribed rate of GST. For example, if prescribed
rate is 12%, IGST will be levied @ 12%.

It is to be noted that GST is a Value added tax i.e. the tax paid at the time of purchase of
goods/services are allowed to be set off or utilized as input tax against the payment of output
tax on sale of goods/services. Therefore, the input and output GST are recorded under separate
accounts as Input GST and Output GST. The Excess of output GST over the input GST is
required to be deposited by the business to the government account as per prescribed rules and
regulations.

Following are some examples of transactions based on GST mechanism:

a) Purchase of Goods (Within Same State/UT):

Purchases A/c Dr.

CGST Input A/c Dr.
SGST/UTGST Input A/c Dr.
To Cash/Bank/Supplier A/c

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b) Purchase of Goods (From Another State/UT):

Purchases A/c Dr.

IGST Input A/c Dr.
To Cash/Bank/Supplier A/c

c) Sale of Goods (Within Same State/UT):

Cash/Bank/Customer A/c Dr.

To Sales A/c
To CGST Output A/c
To SGST/UTGST Output A/c

d) Sale of Goods (To Another State/UT):

Cash/Bank/Customer A/c Dr.

To Sales A/c
To IGST Output A/c

e) Adjustment of credit available against liability of GST:

IGST Output A/c Dr.

To IGST Input A/c
To CGST Input A/c
To SGST/UTGST Input A/c

CGST Output A/c Dr.

To IGST Input A/c
To CGST Input A/c

SGST/UTGST Output A/c Dr.

To IGST Input A/c
To SGST/UTGST Input A/c

NOTE: The IGST credit available on purchase of goods/services is allowed as a set off against the
output IGST/CGST/SGST/UTGST liability FIRST in the same order. Only after IGST Credit has
been fully availed, the CGST and SGST/UTGST credit is to be utilized. However, the
SGST/UTGST credit available on purchase of goods/services is allowed as a set off against
SGST/UTGST liability only. Likewise, CGST credit available on purchase of goods/services is
allowed as a set off against CGST liability only.

f) Deposit of liability of GST:

IGST Output A/c Dr.

CGST Output A/c Dr.
SGST/UTGST Output A/c Dr.
To Cash/Bank A/c

NOTE: Same entries will be passed in case of provision of output services and availment of input
services by a business entity.

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Reversal of Input GST credit:

It must be noted that GST input credit is allowed only where goods and services are used for
furtherance of business or in the ordinary course of business transactions. In any other case the right
to avail input GST credit shall be lost.

Therefore, in following cases the Input GST credit shall lapse and not allowed to be set off against
Output GST liability:

1. Return of goods to seller or issuance of debit note

2. Goods withdrawn by proprietor
3. Goods distributed as free samples, charity or donation
4. Goods lost in fire, theft or goods becoming unfit for resale

In all the above cases – Input IGS/CGST/SGST/UTGST account shall also be credited along with
normal entry which is passed for all such cases.

15. TREATMENT OF MISCELLANEOUS ITEMS:

a) Miscellaneous Incomes/Receipts:

Cash A/c Dr.

To Misc. Income/Receipt A/c

b) Miscellaneous Expenses/Payments:

Misc. Expense/Payment A/c Dr.

To Cash/Bank A/c

Some important concepts to be understood for recording of transactions in journal

Source documents are the evidences of business transactions which provide information about the
nature of the transaction, the date, the amount and the parties involved in it. Transactions are
recorded in the books of accounts when they actually take place and are duly supported by source
documents. Each transaction recorded in the books of accounts should have adequate proof to
support it. These supporting documents are the written and authentic proof of the correctness of
the recorded transactions. These documents are required for audit and tax assessment. They also
serve as the legal evidence in case of a dispute. The following are the most common source
documents.

1. Cash Memo
When a trader sells goods for cash, he gives a cash memo and when he purchases goods for
cash, he receives a cash memo. Details regarding the items, quantity, rate and the price are
mentioned in the cash memo.

2. Invoice or Bill
When a trader sells goods on credit, he prepares a sale invoice. It contains full details relating
to the amount, the terms of payment and the name and address of the seller and buyer. The
original copy of the sale invoice is sent to the purchaser and its duplicate copy is kept for

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making records in the books of accounts. Similarly, when a trader purchases goods on credit,
he receives a credit bill from the supplier of goods.

3. Receipt
When a trader receives cash from a customer, he issues a receipt containing the date, the
amount and the name of the customer. The original copy is handed over to the customer and
the duplicate copy is kept for record. In the same way, whenever we make payment, we
obtain a receipt from the party to whom we make payment.

4. Debit Note
A debit note is prepared by the buyer and it contains the date of the goods returned, name of
the supplier, details of the goods returned and reasons for returning the goods. Each debit
note is serially numbered. A duplicate copy or counter foil of the debit note is retained by the
buyer. On the basis of debit note, the suppliers account is debited in the books.

5. Credit Note
A credit note is prepared by the seller and it contains the date on which goods are returned,
name of the customer, details of the goods received back, amount of such goods and reasons
for returning the goods. Each credit note is serially numbered. A duplicate copy of the credit
note is retained for the record purpose. On the basis of credit note, the customer’s account is
credited in the books.

6. Pay-in-slip
Pay-in-slip is a form available in banks and is used to deposit money into a bank account.
Each pay-in-slip has a counterfoil which is returned to the depositor duly sealed and signed
by the bank official. This source document relates to bank transactions. It gives details
regarding date, account number, amount deposited (in cash or cheque) and name of the
account holder.

7. Cheque
A cheque is a document in writing drawn upon a specified banker to pay a specified sum to
the bearer or the person named in it and payable on demand. Each cheque book has a
counterfoil in which the same details in the cheque are filled. The counterfoil remains with
the account holder for his future reference. The counterfoil forms the source document for
entries to be made in the books of accounts.

8. Vouchers
A voucher is a written document in support of a business transaction. Vouchers are prepared
by an accountant and each voucher is counter signed by an authorized person of the
organization. The vouchers are properly filed according to their serial numbers so that the
auditors may easily vouch them and these may also serve as documentary evidence in future.

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Test Your Knowledge & Practice

1. Following accounts are being maintained in the books of Ram. Classify these under personal, real and
nominal headings:
Capital Plant and Machinery Travelling Expenses Creditors
Commission Paid Commission received Rent Outstanding Sales
Purchases Insurance Prepaid Bank Patents
Goodwill Salary Bank Overdraft Sales Return
Furniture Discount Allowed Cash Debtors

2. Following accounts are being maintained in the books of Ashok. Classify them under; Assets,
Liabilities, Expenses and Revenue Accounts.
Land; Investments; Building; Interest Received; Salary; Bank Overdraft; Debtors; Creditors; Bad Debts;
Capital; Depreciation; Motor Vehicles; Freight; Wages; Goodwill; Repairs.

3. Classify the following into assets, liabilities, capital, revenue, and expenses:
Plant and Machinery; Bank Loan; Sales; Rent; Discount Received; Carriage Inwards; Carriage Outwards;
Purchases; Bills Payable; Wages; Advance Income; Accrued Income; Goodwill; Furniture and Fixtures;
Outstanding Expenses; Capital.

4. Locate the odd items which do not fit to a particular category:

(a) Cash, Bank, Bill receivable, Goodwill.
(b) Building, Plant, Land, Capital.
(c) Capital, Drawings, Net profit, Reserves
(d) Machinery, Motor vans, Furniture, Cash at bank
(e) Building, Machinery, Trade mark, Furniture and fixtures
(f) Goodwill, Bill receivable, Copyright.
(g) Goodwill, Rent, Depreciation, Bad debts.

5. Journalize the following Opening Entry:

Particulars ₹
Cash in hand 2,000
Plant 50,000
Furniture 5,000
Creditors 13,000
Debtors 18,000

6. At the end of an accounting year, a trader finds that no entry has been passed in the books of accounts in
respect of the following transactions:
1. Outstanding salary at the end of the year ₹ 2,200
2. Goods given as charity during the year ₹ 300
3. Stock in Hand at the end of the year ₹ 20,000
You are required to Journalize these transactions.

7. On 1st April 2024, the financial position of ABC traders was as follows:
Particulars ₹
Capital 70,000
Bank overdraft 7,500
Machinery 45,000
Goodwill 5,000
Bills payable 2,500
Cash 1,000

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Furniture 5,000
Building 40,000
Loan from a supplier 20,000
Bills receivable 4,000
Give the opening journal entry.

8. Journalize the following transactions in the books of Goyal:

2024 Particulars ₹
Dec.01 Business started with cash 75,000
Dec.07 Purchased goods for cash 10,000
Dec.09 Sold goods to Ram 5,000
Dec.12 Purchased furniture 3,000
Dec.18 Cash received from Ram in full settlement 4,000
Dec.25 Paid rent 1,000
Dec.30 Paid salary 1,500

9. Journalize the following transactions in the books of Suresh:

2024 Particulars ₹
April 1 Started business with cash 40,000
April 2 Purchased goods for cash 6,200
April 5 Purchased goods from Gurman on credit 3,500
April 8 Sold goods for cash 5,500
April 10 Sold goods on credit to Harman 3,200
April 12 Purchased goods for 9,000
April 18 Purchased goods from Jai 4,500
April 20 Purchased goods on credit 4,200

10. Journalize the following transactions in the books of Kamal:

2024 Particulars ₹
March 1 Sold goods on credit to Mohan 75,000
12 Purchased goods on credit from Bindu 70,000
15 Sold goods for cash to David 50,000
20 Received from Mohan 70,000
25 Paid to Binu 50,000

11. Enter the following transactions in the Journal of Manohar Lal:

2024 Particulars ₹
March 1 Manohar Lal started business with cash 60,000
March 4 Purchased furniture for cash 10,000
March 5 Purchased goods for cash 25,000
March 8 Bought goods from Kamal 15,000
March 10 Sold goods for cash 36,000
March 12 Sold goods to Harman 30,000
March 13 Paid cash to Kamal 15,000
March 14 Received cash from Harman 18,000
March 16 Purchased goods from Sohan 6,000
March 18 Purchased goods from Sohan for cash 8,000
March 20 Paid rent for the office 1,000
March 26 Received Commission 750
March 27 Paid Salary to Govind 1,200
March 28 Received cash from Harman 12,000
March 29 Withdrew cash from office for personal use 4,000
March 30 Wages paid 7,200
March 30 Bought Machinery for Cash 8,000

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12. Enter the following Transactions in the Journal of Mohit:

2024 Particulars ₹
Jan.01 Commenced business with Cash……… 1,75,000
Building…. 1,00,000
Jan.02 Goods purchased for cash 75,000
Jan.03 Sold goods to Ram 30,000
Jan.04 Paid wages 500
Jan.06 Sold goods for cash 10,000
Jan.10 Paid for trade expenses 700
Jan.12 Cash received from Ram 29,500
Discount allowed 500
Jan.14 Goods purchased from Sujit 27,000
Jan.18 Cartage paid 1,000
Jan.20 Drew cash for personal use 5,000
Jan.22 Goods use for house hold 2,000
Jan.25 Cash paid to Sujit 26,700
Discount allowed 300

13. Journalize the following transactions in the books of Ramesh:

2024 Particulars ₹
Jan. 1 Cash purchases 10,000
Jan. 2 Goods purchased from Sham & Sons on credit 8,000
Jan. 2 Cash Sales 6,000
Jan. 3 Salary paid 2,000
Jan. 4 Rent received 1,000
Jan. 5 Machinery purchased for cash 50,000
Jan. 6 Furniture purchased from V.K Trading Co. on credit 8,500
Jan. 8 Cash paid to Sham and Sons 8,000
Jan. 9 Goods sold on credit to Rahul 10,000

14. Journalize the following transactions in the books of Gaurav:

1. Received ₹ 9,500 from Sohan in full settlement of his account for ₹ 10,000.
2. Received ₹ 9,500 from Shyam on his account for ₹ 10,000.
3. Paid ₹ 4,800 to Mohan in full settlement of his account for ₹ 5,000.
4. Paid ₹ 4,800 to Ashok on his account for ₹ 5,000.

15. Record the following transactions in the Journal of Bhim:

2024 Particulars ₹
Feb. 3 Bought goods for cash 84,500
7 Sold goods to Dhanlakshmi on credit 55,000
9 Received commission 3,000
10 Cash Sales 1,09,000
12 Bought goods from Mahalakshmi 60,000
15 Received five chairs from Reva & Co. at ₹ 400 each
20 Paid Reva & Co., cash for five chairs
28 Paid Salaries 10,000
28 Paid Rent 5,000

16. Pass Journal entries in the books of Hari from the following:
2024 Particulars ₹
April 1 Commenced business with cash 50,000
2 Purchased goods from Suhaas 20,000
4 Sold goods to Ram 15,000
6 Ram returned defective goods worth 1,000

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10 Received cash from Ram and 13,800

Discount allowed 200
12 Ravi sold goods to us 10,000
14 Paid to Ravi in full settlement of his account after deducting 5%
discount.
15 Paid Rent 1,000
16 Paid Rent of Hari’s residence 1,500
18 Purchased goods for cash from Govind at 20% trade discount. 6,000
20 Purchased goods from Govind at 20% trade discount. 10,000
24 Paid to Govind in full settlement of his account. 7,850
25 Paid to Suhaas and 4,750
Discount received 250
30 Paid Wages; 400
Salaries; 4,000
Advertisement expenses 800

17. Enter the following transactions in the Journal of Maruti:

2024 Particulars
Jan 10 Purchased goods from Ghanshyam of the list price ₹ 50,000 at 15% trade discount.
Jan 13 Returned goods to Ghanshyam of the list price ₹ 2,000 being defective.
Jan 15 Paid cash to Ghanshyam ₹ 40,000 in full settlement of his account.
Jan 20 Purchased goods from Raghu of the list price ₹ 60,000 at 10% trade discount.
Jan 22 Returned goods to Raghu of the list price ₹ 5,000 being defective.
Jan 25 Paid cash to Raghu ₹ 49,000 in full settlement of his account.

18. Journalize the following transactions in the books of Mohan:

1. Withdrawn goods for personal use (sale price ₹ 360, cost ₹ 300).
2. Goods costing ₹ 300 given as charity, (sale price ₹ 360)
3. Goods costing ₹ 600 distributed as free samples, (sale price ₹ 720)
4. Goods stolen in transit (sale price ₹ 600, cost ₹ 480)
5. Goods destroyed by fire (sale price ₹ 600, cost ₹ 480)
6. Goods stolen by an employee (sale price ₹ 600, cost ₹ 360)
7. Goods used in making of furniture (sale price ₹ 1,200, cost ₹ 900)

19. Pass Journal Entries for the following transactions:

2024 Particulars
Jan 5 Sold goods to Muskaan of list price of ₹ 2,00,000 at trade discount of 20%.
Jan 10 Muskan returned goods of the list price of ₹ 5,000.
Jan 15 Received from Muskan as full & final payment after a cash discount of 4%.

20. Give Journal Entries for the following transactions in the books of Raja Ram:
2024 Particulars
March 4 Bought goods for cash, list price of ₹ 80,000 at 10% trade discount and 2% cash discount.
March 8 Sold goods for cash, list price of ₹ 1,00,000 at 15% trade discount and 3% cash discount.
March 12 Sold goods to Nagpal, list price of ₹ 50,000 at 20% trade discount.
March 19 Nagpal returned one-fourth of the above goods.
March 25 Nagpal settled the account by paying cash under a discount of 5%.

21. Journalize the following transactions:

1. Tarun introduced capital by cheque ₹ 25,000.
2. Purchased goods for ₹ 20,000 and availed discount ₹ 1,000.
3. Sold goods to Puneet for ₹ 5,000.
4. Puneet paid cash and availed discount ₹ 100.

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22. Journalize the following transactions:

1. Gaurav commenced business by introducing capital in cash ₹ 21,000 and by cheque ₹ 50,000.
2. Gaurav purchased goods from Saurab for ₹ 30,000 and Saurab allowed him Trade Discount of ₹ 3,000.
3. He sold goods to Ramesh against cash ₹ 20,000 and allowed him Cash Discount of ₹ 400.
4. Paid salary to Suresh ₹ 3,000.

23. Journalize the following transactions:

1. Rajan commenced business by introducing capital in cash ₹ 11,000 and by cheque ₹ 1,50,000.
2. Purchased car for ₹ 3,00,000 by taking loan of ₹ 2,50,000 from bank.
3. Purchased goods for ₹ 1,00,000 and availed Trade Discount of ₹ 10,000.
4. Paid ₹ 5,000 to bank as instalment, ₹ 2,000 towards principal and ₹ 3,000 as interest.

24. Journalize the following transactions in the books of Modi:

2024 Particulars
Jan 1 Modi started business with ₹ 2,00,000.
Jan 5 Purchased goods worth ₹ 30,000 at a trade discount of 5%.
Jan 9 Purchased goods worth ₹ 40,000 at a cash discount of 6%.
Jan 12 Sold goods worth ₹ 35,000 to Hooda at a trade discount of 2%.
Jan 16 Sold goods worth ₹ 25,000 to Nitish at a cash discount of 4%, Cheque was received on the
spot.
Jan 20 Goods of the selling price of ₹ 20,000 were sold at a trade discount of 5% and cash
discount 2%, payment received by cheque.

25. Journalize the following transactions in the Journal of Mohan:

2024 Particulars
Jan. 1 Bought goods of the list price of ₹ 10,000 from Sohan less 15% trade discount and 5% cash
discount and paid 40% at the same time.
Jan. 2 Purchased goods from Murari of the list price of ₹ 10,000 at 12% trade discount and paid
him by cheque under a cash discount of 5%.
Jan. 3 Sold goods to Kapti of the list price of ₹ 10,000 at 10% trade Discount and received a cheque
under a cash discount of 2%.
Jan. 4 Deposited Kapti's cheque into the bank.
Jan. 7 Cheque of Kapti returned as being dishonoured.
Jan. 10 Kapti was declared insolvent and a dividend of 60 paise in a rupee received from his estate.

26. Journalize the following transactions in the books of Vijay:

2024 Particulars
May 1 Vijay commenced business with cash ₹ 1,50,000.
May 4 Paid marriage expenses of proprietor's daughter from the business ₹ 41,000.
May 12 Life Insurance premium paid on the life of proprietor’s wife ₹ 12,000.
May 14 Rent of the residence of the proprietor paid from his own pocket ₹ 16,000.
May 18 Personal cash paid to purchase machinery for the business ₹ 74,000.

27. Record the following transactions in the books of Rakhi:

2024 Particulars
March 1 Cash deposited into bank ₹ 40,000.
March 4 Personal cash deposited into business bank account ₹ 60,000.
March 10 Cash withdrawn from bank for personal use ₹ 15,000.
March 11 Cash withdrawn from bank for office use ₹ 9,900.
March 18 Cheque issued to Shreya ₹ 14,400.
March 20 Cheque issued to Balbir ₹ 16,000 for his salary.
March 22 Received cheque from Amrita ₹ 9,100 and deposited into bank the same day.
March 24 Cheque issued to Shreya returned dishonoured.

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28. Journalize the following transactions in the books of Mohan:

2024 Particulars
Jan 1 Cash withdrawn from bank ₹ 9,000.
Jan 8 Cash withdrawn from bank for personal use ₹ 8,000.
Jan 12 Proprietor withdrew cash ₹ 7,000.
Jan 16 Cash withdrawn for office use ₹ 6,000.
Jan 20 Goods destroyed by accident ₹ 5,000.
Jan 22 Goods donated ₹ 4,000.
Jan 25 Goods withdrawn by proprietor for personal use ₹ 400.
Jan 29 Goods distributed as free samples ₹ 500.

29. Journalize the following transactions in the books of Deep Shikha:

2024 Particulars
Jan 2 Purchased goods for ₹ 16,000 from Surachna
Jan 4 Sold the above goods to Hem Lata for ₹ 20,000.
Jan 6 Hem Lata returned 1/5th of the goods sold to her, which in turn were returned to
Surachana.
Jan 8 Goods spoiled by flood ₹ 7,000.
Jan 10 Goods destroyed by fire ₹ 9,000. Transport Company admitted the claim for ₹ 7,700.
Jan 12 Goods stolen from the showroom ₹ 11,000. Insurance company paid the claim for ₹
9,700.
Jan 14 Goods destroyed by accident ₹ 13,000. Insurance company admitted the full claim.
Jan 16 Goods destroyed by fire ₹ 15,000.
Jan 18 Insurance company admitted the claim for ₹ 12,500.

30. Journalize the following transactions:

1. Paid rent of building ₹ 7,200 half of the building is used by the proprietor for residential use.
2. Paid fire insurance of the above building in advance ₹ 600.
3. Paid life insurance premium ₹ 1,200.
4. Paid income tax ₹ 1,800.
5. Salary due to clerk ₹ 300.
6. Charge depreciation on furniture @ 10% p.a. for one month (furniture ₹ 7,200).
7. Provide interest on capital (₹ 36,000) at 15% p.a. for six months.
8. Charge interest on drawing (₹ 6,000) at 18% p.a. for six months.
9. Provide interest on loan from Ram (₹ 60,000) at 18% p.a. for two months.
10. Charge interest on loan to Shyam (₹ 1,20,000) at 18% p.a. for two months.
11. Received commission ₹ 600; half of which is in advance.
12. Brokerage due to us ₹ 300.

31. Record the following transactions in the Journal of Shyam Sunder:

2024 Particulars
April 1 Shyam Sunder started business with Cash ₹ 75,000, Goods ₹ 30,000 and Furniture ₹
5,000.
April 2 Sold goods to Bhushan of list price of ₹ 10,000 at trade discount of 10%.
April 4 Bhushan returned goods worth ₹ 1,000.
April 6 Received from Bhushan ₹ 8,000 in full settlement of his account.
April 8 Purchased Furniture for ₹ 6,000.
April 10 Purchased goods from Navin for ₹ 25,000 less trade discount 12%.
April 11 Returned goods to Navin of the list price of ₹ 2,000.
April 12 Cleared the account of Navin by paying cash, under a discount of 5%.
April 14 Sold goods to Ajay ₹ 10,000 and Vijay ₹ 16,000.
April 16 Received cash from Ajay ₹ 9,800 in full settlement of his account.
April 18 Paid insurance premium ₹ 500.

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April 20 Paid for Shyam Sunder's Life Insurance Premium ₹ 200.

April 22 Purchased goods for ₹8000 for cash at a trade discount of 10% and cash discount of 2%.
April 24 Received cash from Vijay at a cash discount of 5% in full settlement of his account.
April 26 Paid Rent ₹ 8000; advertisement ₹ 500 and Salaries ₹ 4,000.

32. Journalize the following transactions in the books of Ram Gopal:

2024 Particulars
Feb 1 Goods destroyed by fire ₹ 16,000. Goods were uninsured.
Feb 4 Goods destroyed by rain ₹ 90,000. Insurance company admitted the full claim.
Feb 8 Goods destroyed in transit ₹ 25,000. Transport company admitted the claim for ₹ 19,000.
Feb 10 Goods destroyed by flood ₹ 38,000. Full claim received from government by cheque.
Feb 12 Cash stolen from the cash box ₹ 45,000.
Feb 16 Goods destroyed by accident ₹ 91,000. Insurance company paid the claim of ₹ 71,000.

33. Journalize the following transactions in the books of Bal Krishan:

2024 Particulars
April 1 Purchased goods for ₹ 8,000, carriage on purchase ₹ 100.
April 2 Purchased machinery for ₹ 14,500, freight on purchase ₹ 500.
April 4 Goods sold for ₹ 12,000, selling commission paid ₹ 600.
April 8 Furniture costing ₹ 15,000 sold for ₹ 18,000, brokerage on sale ₹ 1,000.
April 10 A business vehicle costing ₹ 35,000 was sold for ₹ 30,000, selling commission paid ₹ 900.

34. Journalize the following transactions in the books of Alok Nath:

2024 Particulars
March 1 Goods purchased for ₹ 20,000. Freight paid ₹ 500.
March 2 Machinery purchased for ₹ 30,000. Installation charges paid ₹ 900.
March 5 Goods purchased for ₹ 25,000 from Prince. Cartage paid ₹ 300.
March 8 Furniture costing ₹ 9,000 sold for ₹ 11,000, payment received by demand draft.
March 10 Goods costing ₹ 12,000 sold for ₹ 15,000. Selling expenses incurred ₹ 500.
March 12 Printer costing ₹ 12,000 sold for ₹ 15,000. Selling expenses incurred ₹ 600.
March 15 An office almirah costing ₹ 15,000 sold for ₹ 13,000. Selling expenses incurred ₹ 500.

35. Journalize the following transactions in the books of Sohan:

2024 Particulars
Feb 1 Goods costing ₹ 2,000 sold at a profit of ₹ 500.
Feb 2 Machinery costing ₹ 4,000 sold at a profit of ₹ 1,000.
Feb 3 Goods worth ₹ 10000 sold at a loss of 10%.
Feb 4 Furniture costing ₹ 12,000 sold at a loss of 5%.
Feb 5 Goods worth ₹ 10,000 purchased for ₹ 12,000.
Feb 6 Computer worth ₹ 25,000 purchased for ₹ 28,000.

36. Pass journal entries for the following:

2024 Particulars
March 1 Purchased goods for Cash ₹ 10,000 and spent ₹ 200 for their carriage.
March 2 Purchased machinery for Cash ₹ 50,000 and spent ₹ 500 for its carriage.
March 5 Paid ₹ 20,000 for cement, ₹ 10,000 for timber and ₹ 5,000 as wages for the construction of
building.
March 8 Purchased an old machinery for ₹20,000 and spent ₹ 2,500 on its immediate repairs.
March 10 Paid ₹ 500 for repairing some other machinery.

37. Journalize the following transactions in the books of Shweta:

2024 Particulars ₹
April 1 Rent paid 6,000

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April 4 Rent due but not paid 7,000

April 8 Rent received 8,000
April 10 Rent due but not received 9,000
April 12 Rent paid for the next year 10,000
April 16 Rent paid for the last year 11,000
April 20 Rent received for the next year 12,000
April 21 Rent received for the last year 13,000

38. Journalize the following transactions in the books of Dhoni:

2024 Particulars ₹
Jan. 1 Salaries paid by cheque 6,000
Jan. 4 Salaries due but not paid 3,000
Jan. 6 Interest received 5,000
Jan. 10 Interest due but not received 1,500
Jan. 14 Commission paid for the current year 4,500
Jan. 16 Commission paid for the next year 4,000
Jan. 19 Commission of last year paid 3,500
Jan. 21 Rent of current year received 6,800
Jan. 22 Rent of next year received 7,000
Jan. 25 Rent of last year received 8,500

39. Record the following transactions in the books of Aarti:

2024 Particulars
March 1 Pooja who owed ₹ 60,000 is declared insolvent. First and final composition of 80% is
recovered from her.
March 2 Recovered ₹ 56,000 from Sneha on her insolvency, being 80% of the amount due.
March 5 Recovered ₹ 19,900 from Akanksha whose account of ₹ 24,800 was written off as bad in
the past.
March 8 Deepa who owed ₹ 45,000 is declared insolvent. First installment of 40% recovered from
her.
March 10 Second and final dividend of 30% was recovered from Deepa.

40. Journalize the following:

1. Goods worth ₹ 400 were given as charity out of business.
2. Received cash ₹ 500 from a bad debt written off last year.
3. Interest charged on drawings @ 5% when total drawings were ₹ 10,000.
4. Received a cheque from J. Peterson ₹ 5,450. Allowed him discount of ₹ 150.
5. Returned goods to Sudarshan of the value of ₹ 350.
6. Issued a cheque in favour of M/s. Karanvir Timber Company on account of the purchase of timber
worth ₹ 7,500.

41. Journalize the following:

1. Bought goods from Nilesh for cash ₹ 1,500.
2. Paid to Sita ₹ 965 in full payment of her dues of ₹ 1,000.
3. Paid ₹ 250 in cash as wages on installation of a machine.
4. Rahul who owed ₹ 5,000 was declared insolvent and 60 paise in a rupee is received as final
compensation.
5. Out of Insurance paid this year, ₹ 3,000 relates to next year.
6. Provide depreciation @ 10% on furniture costing ₹ 10,000 for 9 months.

42. Journalize the following:

1. Received ₹ 100 from sales of old newspapers and ₹ 500 from sales of old chairs.
2. Goods given away as charity goods costing ₹700.

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3. Received Cash from a debtor written off as bad-debt last year ₹ 2,000.
4. Sold goods costing ₹5,000 to Ashok on credit at a profit of 20% on cost.
5. Sold goods costing ₹ 5,000 for ₹ 4,500.
6. Provide ₹ 5,000 as interest on Capital.
7. Paid rent of building ₹6,000. Half the building is used by the proprietor for residential purpose.
8. Outstanding salary at the end of the year ₹ 10,000.

43. Journalize the following transactions in the books of Ajay:

1. Ajay returned goods purchased from Manoj ₹ 22,000. He had availed Trade Discount of ₹ 2,200 on the
goods returned.
2. Ajay received ₹ 5,000 from Abhay which he had earlier written off as Bad Debts.
3. A fire occurred in the godown of Ajay and he lost goods worth ₹ 10,000. The stock was not insured.
4. Ajay took goods worth ₹ 2,500 (Cost) for his personal use.

44. Journalize the following transactions in our books:

1. Amount due from Sushil ₹ 2,000 is not recoverable.
2. Goods purchased for ₹ 1,000 given as charity.
3. Cheque of Jatinder of ₹ 10,000 deposited, returned unpaid.
4. Bank Charges charged by bank ₹ 250.

45. Journalize the following transactions:

1. Shyam became insolvent. A first and final compensation of 75 paise in a rupee was received from his
Official Receiver. He owed us ₹ 1,000.
2. Received cash for a bad debt written off last year ₹ 500.
3. Rent due to landlord ₹ 800.
4. Salaries due to clerks ₹ 1,000.
5. Placed an order with Rakesh Mohan for the supply of goods of the list price of ₹ 1,00,000. In this
connection, we paid 10% of the list price as an advance by cheque.

46. Journalize the following entries:

1. Goods worth ₹ 500 given as charity.
2. Received ₹ 975 from Harikrishna in full settlement of his account for ₹ 1,000.
3. Received a first and final dividend of 60 paise in a rupee from the Official Receiver of Rajan, who owed
us ₹ 1,000.
4. Charged depreciation on plant ₹ 1,000.

47. Journalize the following transactions with narration:

1. Paid Income Tax ₹ 3,000.
2. Interest on Capital ₹ 300.
3. Goods worth ₹ 500 given as charity.
4. Goods worth ₹ 500 were used by the proprietor for domestic purposes.
5. Goods uninsured worth ₹ 3,000 were destroyed by fire.
6. Paid ₹ 250 as wages on installation of a new machine.
7. Supplied goods costing ₹ 600 to Mohan issued at 10% above cost less 5% Trade Discount.

48. Prepare the Journal from the transactions given below:

1. Rent outstanding ₹ 5,000.
2. Received interest on loan from the debtor ₹ 25,000.
3. Provided interest on capital (₹ 50,000) at 6% for six months.
4. Received ₹ 780 from Surinder in full settlement of his debt of ₹ 800.

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49. Journalize the following transactions:

1. Paid ₹ 2,000 in cash as wages on installation of a machine.
2. Sold goods to Manohar, list price ₹ 4,000, Trade Discount 10% and Cash Discount 5%. He paid the
amount on the same day and availed the cash discount.
3. Received an order from Shyam for supply of goods of the list price of ₹ 1,00,000 with an advance of
10% of list price.
4. Received commission ₹ 5,000, half of which is in advance.
5. Rajani Kant is declared insolvent. A final compensation of 25 paise in the rupee is received from his
estate out of ₹ 5,000.
6. Cash embezzled by an employee ₹ 1,000.

50. Pass the Journal entries for the following transactions:

1. Purchased goods from Suraj of ₹ 40,000 plus IGST @ 12% at 10% Trade Discount and 2% Cash
Discount. Paid amount at the time of purchase itself.
2. Purchased goods from Mohan ₹ 40,000 plus IGST @ 12% at 10% Trade Discount and 3% Cash
Discount. Half of the amount paid at the time of purchase.
3. Sold goods to Amit for ₹ 20,000 plus CGST and SGST @ 6% each, allowed him 10% Trade Discount
and 3% Cash Discount. Received half of the amount by cash and balance by cheque within agreed
time.
4. Sold goods to Rahul for ₹ 50,000 plus CGST and SGST @ 6% each at 10% Trade Discount and 2%
Cash discount. Half of the amount received by cheque within specified time.
5. Sold goods costing ₹ 40,000 to Vimal against a cheque at a profit of 25% on cost less 20% trade
discount plus IGST @ 12%. Cash discount is allowed @ 2%.

51. Journalize the following transactions in the books of Parul (Chandigarh):

1. Sold goods costing ₹ 1,20,000 to Charan (Chandigarh) at a profit of 1/3rd on cost less 15% Trade
Discount and charged 5% GST.
2. Sold goods costing ₹ 80,000 to Arun (Bihar) for cash at a profit of 25% on cost less 15% Trade Discount
and charged 12% GST.
3. Purchased goods from Sachin (Punjab) for cash ₹ 10,000 (GST @ 18%). Payment is made by a cheque.
4. Paid by cheque ₹ 8,400 as insurance premium for a period of 12 months starting 1 st August 2023.
Financial year closes on 31st March every year.

52. Journalize the following transactions in the books of M/s Royal Traders (Punjab):
1. Purchased goods from Pawan (Haryana) for ₹ 2,00,000 plus GST @ 12%.
2. Sold 3/4 of the above goods for ₹ 1,60,000 to Nutan (Punjab) plus GST @ 12%
3. Sold the balance of goods to Rubi (H.P) for ₹ 80,000 and charged GST@12%

53. Atlas Cycles purchased 100 cycles from Hero Cycles, Ludhiana (Punjab) @ ₹ 1,200 per cycle plus IGST @
12%. Hero Cycles allowed 10% Trade Discount and 3% Cash Discount if payment is made within 14 days.
Atlas Cycles received 10 cycles damaged during transit, which it returned. Atlas Cycles settled the payment
in 10 days time.

54. Oswal Limited, Amritsar (Punjab) sold shawls to Baba Garments, Jaipur as per details: Sold 100 shawls @
₹ 200 per shawl on 4th January, 2023, IGST is levied @ 12%. Trade Discount 25% and Cash Discount 5% if
full payment is made within 14 days. Baba Garments sent 50% of the payment on 14 th January, 2023 and
balance payment on 10th February 2023. Pass Journal entries.

55. Journalize the following transactions in the books of Manoj Store (Haryana):
1. Purchased goods from Ramesh (Haryana) ₹ 20,000 less Trade Discount at 20% plus GST @ 5%.
2. Sold goods costing ₹ 7,000 to Krishna (Punjab) for ₹ 9,000 plus GST @ 5%.
3. Sold the balance goods for ₹ 10,000 and charged GST @ 5% against cheque.

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4. GST was deposited into Government Account on due date.

5. Paid ₹ 25 in cash as wages on installation of a machine.
6. Sold goods to Kitty at a list price of ₹ 2,000. Sales subject to 10% Trade Discount and 5% Cash
Discount if payment is made immediately. Kitty availed of cash discount.
7. Supplied goods costing ₹ 600 to Shakuntala. Issued invoice at 10% above cost less 5% Trade Discount.

56. Journalize the following transactions in the books of Raman Enterprises, Delhi:
1. Purchased goods from Ram & Co., Delhi of list price ₹ 25,000 at 20% trade discount and 3% cash
discount on value of goods. Paid CGST and SGST @ 6% each. Payment was made immediately and
availed cash discount.
2. Purchased goods from Sohan Agencies, Delhi of list price ₹ 20,000 at 25% trade discount and 2% cash
discount. Paid CGST and SGST @ 6% each. 50% of the payment was made immediately.
3. Purchased goods from Baba & Sons, Delhi of list price ₹ 50,000 at 20% trade discount and 3% cash
discount. Paid CGST and SGST @ 6% each. 75% of the payment was made immediately by cheque.
4. Sold to Suresh & Co., Chandigarh goods of list price ₹ 40,000 at 15% trade discount and 3% cash
discount. Charged IGST @ 12%. Suresh & Co. paid the full amount by cheque and availed cash
discount.
5. Sold to Mudit & Co., Chennai goods costing ₹ 10,000 at 25% profit, allowing 10% trade discount and
2% cash discount. Charged IGST @ 12%. Mudit & Co. made 60% payment immediately.
6. Sold goods of list price ₹ 50,000 less 20% trade discount. Charged IGST @ 12%. Cash discount
allowed @ 2% against cheque payment.

57. Give a journal entry for the following events:

1. Goods costing ₹ 1000/- (CGST, SGST 6% each) lost by fire. The goods were uninsured.
2. Goods costing ₹ 5000/- (CGST, SGST 9% each) lost by fire. The goods were fully insured. Insurance
claim has been admitted.
3. Goods costing ₹ 2000/- (CGST, SGST 6% each) has been withdrawn by proprietor for personal use.
4. Goods costing ₹ 1000/- (CGST, SGST 9% each) given away as charity.
5. Goods costing ₹ 3000/- (CGST, SGST 6% each) has been distributed as free sample to distributors.
6. Old Furniture worth ₹ 5000/- sold at a loss of 10%. Rate of IGST is 18%.

58. Give a journal entry for the following transactions:

1. Bought goods for ₹ 5,000 plus CGST and SGST @ 6% each.
2. Purchased goods from Ram for ₹ 30,000 plus CGST and SGST @ 6% each.
3. Purchased goods from Ram for ₹ 40,000 plus CGST and SGST @ 6% each, issued him cheque ₹
20,000, balance payable after two months.
4. Purchased goods from Mohan for ₹ 50,000 plus IGST @ 12% against cheque payment.
5. Sold goods to Saurav for ₹ 50,000, charged CGST and SGST @ 6% each.
6. Sold Goods for ₹ 6,000, charged CGST and SGST @ 6% each.
7. Sold goods to Amit for ₹ 50,000, charged CGST and SGST @ 6% each against cheque for ₹ 6,000,
balance to be received after two months.
8. Sold goods to Kamal for ₹ 60,000 against cheque, charged IGST @ 12%.
9. Furniture purchased by Shyam & Co., Delhi for office use from Diwan Mart for ₹ 50,000 plus IGST @
12%, payment made by cheque.
10. Purchased computer for office use from Computer Mart for ₹ 50,000 plus IGST @ 12%, paid ₹ 25,000
by cheque and balance to be paid after one month.
11. Paid telephone bill of ₹ 5,000 plus CGST and SGST @ 6% each.
12. Goods that were purchased paying CGST and SGST @ 6% each costing ₹ 2,000 given as sample.
13. Goods that were purchased paying CGST and SGST @ 6% each costing ₹ 1,000 given as donation.
14. Goods purchased paying IGST @ 12% costing ₹ 20,000 were destroyed by fire.
15. Goods purchased paying IGST @ 12% costing ₹ 20,000 were destroyed by fire. These goods were
insured and Insurance Co. admitted the claim for ₹15,000.
16. An old furniture was sold for ₹ 5,000 against cheque and charged CGST and SGST @ 6% each.

CA Manish Mahajan