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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

 

 

25,000

 

 

 

10,000

1,200

 

 

 

22,400

 

 

25,000

 

 

 

40,000

 

 

 

10,000

1,200

 

 

 

 

2,240

 

 

 

20,000

 

 

 

 

20,000

 

 

 

25,000

 

 

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.

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.

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.

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.

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.

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

15,000

Xi

Insurance Premium A/c

Input CGST A/c

Input SGST A/c

  To Bank A/c

(Being the insurance premium paid)

Dr.

Dr.

Dr.

 

10,000

600

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

 

 

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.

Dr.

 

75,000

37,000

 

 

 

1,00,000

6,000

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.

Dr.

 

65,000

6,000

 

 

 

71,000

xv

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.

Dr.

 

49,392

900

 

 

 

45,000

2,646

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.

Dr.

Dr.

Dr.

 

50,000

500

3,030

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)