11th | Accounting of Goods and Services Tax (GST) | Question No. 5 and 6 | Ts Grewal Solution 2022-2023

Question 5: 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 salaries of 60,000.

(iv) Sold goods to Bharat, Kaithal (Haryana) of ` 10,000 plus IGST @ 12% out of which 1/5th were returned by Bharat 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.

(vi) 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) Puneet 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 ` 11,200 including 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 paying CGST and SGST @ 6% each.

(xiv) Purchased machinery for ` 56,000 including IGST of ` 6,000 and paid cartage there on ` 5,000 and installation charges ` 10,000.

(xv) Goods costing ` 40,000 sold to Kapil 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 count draft from bank. Paid bank charges ` 500. Bank charged CGST and GST @ 6% each on Bank charges.

Answer:

JOURNAL OF PUNEET, DELHI

Date

Particulars

L.F.

Dr. (`)

Cr. (`)

(i)

(ii )

(iii )

(iv)

(a)

(b)

(v)

(vi)

vii(a)

(b)

Viii

(a)

(b)

No Entry

25,000

40,000

11,200

2,000

240

20,000

8,000

12,000

25,000

10,000

1,200

22,400

25,000

40,000

10,000

1,200

2,240

20,000

25,000

11,200

20,000

2,400

Bank A/c

To Advance from AK & Co. A/c

(Being the advance received against the order of ` 1,00,000)

Dr.

Outstanding Salaries A/c

To Cash/Bank A/c

(Being the outstanding salaries paid)

Dr.

Bharat

To Sales A/c

To Output IGST A/c

(Being the inter-state sale of goods to Bharat, charged IGST @ 12%)

Dr.

Returns Inward A/c

Output IGST A/c

To Bharat

(Being 1/5th of the goods sold to Bharat returned by him, GST reversed)

Dr.

Feroz

To Bank A/c

(Being the cheque issued by Feroz dishonoured)

Dr.

Cash/Bank A/c

Bad Debts A/c

To Feroz

(Being 40 paise in a rupee received from Feroz against his dues)

Dr.

Cheques in Hand A/c

To Mohan

(Being the cheque received from Mohan)

Dr.

Bank A/c

To Cheques in Hand A/c

(Being the cheque received from Mohan deposited in bank)

Dr.

Purchases A/c

Input IGST A/c

To Barun

(Being the inter-state purchase of goods from Barun, IGST payable @ 12%)

Dr.

Arun

To Sales A/c

To Output IGST A/c

(Being the inter-state sale of goods to Arun, charged IGST @ 12%)

Dr.

(ix) (a)

Returns Inward A/c

Output IGST A/c

To Arun

(Being the goods returned by Arun, GST reversed)

Dr.

6,000

720

6,720

(x)

Barun

To Returns Outward A/c

To Input IGST A/c

(Being the goods returned to Barun)

Dr.

3,360

3,000

360

(ix) (a)

Purchases A/c

Input IGST A/c

To Bank A/c

(Being the goods purchased for ` 2,00,000 plus 12% IGST)

Dr.

2,00,000

24,000

2,24,000

(b)

Bank A/c

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Being the goods sold for ` 2,50,000 plus CGST and SGST @ 6% each)

Dr.

2,80,000

2,50,000

15,000

Insurance Premium A/c

Input CGST A/c

Input SGST A/c

To Bank A/c

(Being the insurance premium paid)

Dr.

10,000

600

11,200

Xii

Cash/Bank A/c

To Capital A/c

(Being the sale proceeds of personal car brought in business by the proprietor)

Dr.

1,00,000

Xiii

Insurance Co

Loss of Stock by Fire A/c (Profit and Loss A/c)

To Purchases A/c

To Input CGST A/c

To Input SGST A/c

(Being the company admitted claim for loss of goods by fire, CGST and SGST reversed)

Dr.

75,000

37,000

1,00,000

6,000

Xiv

Machinery A/c

Input IGST A/c

To Bank A/c

(Being the machinery purchased for ` 50,000 paid ` 5,000 for its cartage, ` 10,000 installation and IGST @ 12%)

Dr.

65,000

6,000

71,000

Bank A/c (Note)

Discount Allowed A/c

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Being the intra-state sale of goods at a profit of 20% on sales less 10% trade discount plus CGST and SGST @ 6% each and 2% cash discount)

Dr.

49,392

900

45,000

2,646

xvi

Machinery A/c

Bank Charges A/c

Input CGST A/c (6% of ` 50,000 + 6% of ` 500)

Input SGST A/c (6% of ` 50,000 + 6% of ` 500)

To Bank A/c

(Being the machinery purchased against draft)

Dr.

50,000

500

3,030

56,560

Note: Cost of Goods Sold ` 40,000

*Profit = 20% of Sales = 25% of Cost = ` 10,000

(*Let Sales = ` 100; Profit = ` 20; Cost = ` 80; Profit on Cost (%) = ` 20 × 100 = 25%.)` 80

Particulars	`
Cost	40,000
Add: Profit on Cost (25%)	10,000
List Price	50,000

Less: Trade Discount	5,000
	45,000
Less: Cash Discount (2% of ` 45,000)	900
	44,100
Add: CGST @ 6%	2,646
SGST @ 6%	2,646
Amount Received	49,392

Question 6: Record the following transactions of Sumant, Kochi in a Two-column Cash Book and balance the book on 31st January, 2022:

Date	Particulars	`	Date	Particulars	`
2022			2022
Jan. 1	Cash Balance	1,000	Jan. 16	Bought goods, including IGST @ 12%	6,720
Jan. 1	Bank Balance	14,500	Jan. 19	Issued cheque to Shyam	3,700
Jan. 1	Received advance by cheque	60,000	Jan. 20	Drew from Bank	3,000
Jan. 2	Withdrew from Bank	10,000	Jan. 22	Cash drawn from bank for personal use	2,000
Jan. 3	Purchased goods from Amit 13,000 plus		Jan. 24	Cash Sales, including CGST and SGST@ 6% each	1,904
	CGST and SGST @ 6% each and paid by cheque		Jan. 27	Received from Rakesh	18,000
Jan. 4	Paid Wages	2,500		Discount Allowed	500
Jan. 5	Received from Mohan a cheque for ` 9,800 against due of ` 25,000 on account		Jan. 28	Deposited cash into Bank	15,000
Jan. 8	Mohan's cheque deposited in Bank		Jan. 28	Issued cheque for cash purchases
Jan. 14	Purchased stationery for cash ` 1,500 plus CGST and SGST @ 6% each.			including IGST @ 12%	2,240
			Jan. 30	Paid rent ` 2,000 by cheque plus CGST and SGST@ 6% each

Answer:

In the Books of Sumanto, Kochi
TWO-COLUMN CASH BOOK
Dr.									Cr.
Date	Particulars	L.F.	Cash (`)	Bank(`)	Date	Particulars	L.F.	Cash (`)	Bank (`)
2022					2022
Jan.1	To Balance b/d		1,000	14,500	Jan.2	By Cash A/c	C	...	10,000
Jan.1	To Advance A/c		...	60,000	Jan.3	By Purchases A/c		...	13,000
Jan.2	To Bank A/c	C	10,000	...	Jan.3	By Input CGST A/c		...	780
Jan.8	To Cheques in Hand A/c*		...	9,800	Jan.3	By Input SGST A/c		...	780
Jan. 20	To Bank A/c	C	3,000	...	Jan.4	By Wages A/c		2,500	...
Jan. 24	To Sales A/c (Note)		1,700	...	Jan.14	By Stationery A/c		1,500	...
Jan. 24	To Output CGST A/c (Note)		102	...	Jan.14	By Input CGST A/c		90	...
Jan. 24	To Output SGST A/c (Note)		102	...	Jan.14	By Input SGST A/c		90	...
Jan. 27	To Rakesh		18,000	...	Jan.16	By Purchases A/c		6,000	...
Jan. 28	To Cash A/c	C	...	15,000	Jan.16	By Input IGST A/c		720	...
						(` 6,720 × 12/112)
					Jan.19	By Shyam		...	3,700
					Jan.20	By Cash A/c	C	...	3,000
					Jan.22	By Drawings A/c		...	2,000
					Jan.28	By Bank A/c	C	15,000	...
					Jan.28	By Purchases A/c		...	2,000
					Jan.28	By Input IGST A/c		...	240
						(` 2,240 × 12/112)
					Jan.30	By Rent A/c		...	2,000
					Jan.30	By Input CGST A/c		...	120
					Jan.30	By Input SGST A/c		...	120
					Jan.31	By Balance c/d		8,004	61,560
			33,904	99,300				33,904	99,300
Feb 1	Balance b/d		8,004	61,560

Note: GST = ` 1,904 × 12/112 = ` 204 out of which half is CGST and half is SGST, i.e., ` 102 each.

*Cheque received from Mohan dated 5th January, is not deposited immediately in the bank, so it will be first recorded as ‘Cheque in Hand’ A/c in the Journal proper and subsequently it is deposited in the bank, the same will be recorded in ‘Bank Column by writing ‘Cheque in Hand’ A/c.

Note: Journal entries for Discount Allowed and Discount Received will be passed as follows:

Date	Particulars		L.F.	Dr. (`)	Cr. (`)
2022
Jan. 5	Cheques in Hand A/c	Dr.		9,800
	To Mohan				9,800
	(Being the payment received by cheque from Mohan)
Jan. 27	Discount Allowed A/c	Dr.		500
	To Rakesh				500
	(Being the discount allowed to Rakesh against payment received)

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11th | Accounting of Goods and Services Tax (GST) | Question No. 5 and 6 | Ts Grewal Solution 2022-2023