D.Chadha, Delhi commenced business on 1st January, 2019. His transactions for the month are given below. Journalise them. He will close his books on 31st March each year.

2019 ₹

Jan. 1 Commenced business with Cash 25,000

Jan. 2 Opened Bank Account with cheque from his Savings Account 2,25,000

Jan. 3 Bought goods from Ramesh & Co., Delhi, plus CGST and SGST @ 6% each 54,000

Jan. 3 Sold goods to Rajesh of ₹ 60,000, charged CGST and SGST @ 6% each

Jan. 7 Bought goods from Rahul, Chennal, plus IGST @ 12% 65,000

Jan. 8 Paid wages in cash (GST not levied) 8,000

Jan. 8 Sold goods to Mahesh, Kochi of ₹ 60,000; charged IGST @ 12%

Jan. 10 Received cheque from Rajesh (Discount allowed ₹ 1,200) 66,000

Jan. 11 Paid to Ramesh & Co. (Discount received ₹ 2,700) 51,300

Jan. 12 Paid rent @ ₹ 15,000 per month for three months up to March, plus CGST and SGST @ 6% each

Jan. 15 Paid office expenses in cash 700

Jan. 21 Sold to Rakesh, Delhi goods of ₹ 25,000, charged CGST and SGST @ 6% each

Jan. 22 Paid office expenses in cash 500

Jan. 22 Paid to Rahul by cheque (discount ₹ 3,200) 61,300

Jan. 25 Received cheque from Mahesh Kochi (discount ₹ 1,500) 65,700

Jan. 27 Rakesh, Delhi returned goods (being not as per sample) 2,000

Jan. 31 Paid salaries for the month 20,000

Open in App

Solution

Books of D. Chadha

Journal

Date

Particulars

L.F.

Debit Amount

(₹)

Credit Amount

(₹)

2019

Jan.01

Cash A/c

Dr.

25,000

To Capital A/c

25,000

(Started business with Cash)

Jan.02

Bank A/c

Dr.

2,25,000

To Cash A/c

2,25,000

(Opened Bank Account with his Savings Bank Account Cheque)

Jan.03

Purchases A/c
Input CGST A/c
Input SGST A/c

Dr.
Dr.
Dr.

54,000
3,240
3,240

To Ramesh & Co

60,480

(Bought goods from Ramesh & Co @ 6% CGST and SGST)

Jan.03

Rajesh

Dr.

67,200

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

60,000
3,600
3,600

(Sold goods to Rajesh @ 6% CGST and SGST)

Jan.07

Purchases A/c
Input IGST A/c

Dr.
Dr.

65,000
7,800

To Rahul

72,800

(Bought goods from Rahul @ 12% IGST)

Jan.08

Wages A/c

Dr.

800

To Cash A/c

800

(Paid Wages)

Jan.08

Mahesh

Dr.

67,200

To Sales A/c
To Output IGST A/c

60,000
7,200

(Sold goods to Mahesh @ 12% IGST)

Jan.10

Bank A/c

Dr.

66,000

Discount Allowed A/c

Dr.

1,200

To Rajesh

67,200

(Received cheque from Rajesh and discount allowed)

Jan.11

Ramesh & Co

Dr.

54,000

To Cash A/c

51,300

To Discount Received

2,700

(Paid to Ramesh & Co and Discount Received)

Jan.12

Prepaid Rent A/c
Input CGST A/c
Input SGST A/c

Dr.
Dr.
Dr.

15,000
900
900

To Cash A/c

16,800

(Paid rent in advance upto March plus 6% CGST and SGST)

Jan 15

Expenses A/c

Dr.

700

To Cash A/c

700

(Paid office expenses in cash)

Jan.21

Rakesh

Dr.

28,000

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

25,000
1,500
1,500

(Sold goods to Rakesh)

Jan.22

Expenses A/c

Dr.

500

To Cash A/c

500

(Paid office expenses)

Jan.22

Rahul

Dr.

64,500

To Bank A/c

61,300

To Discount Received A/c

3,200

(Paid to Rahul and discount received)

Jan.25

Bank A/c

Dr.

65,700

Discount Allowed A/c

Dr.

1,500

To Mahesh

67,200

(Received Cheque from Mahesh, Kochi and discount allowed)

Jan.27

Sales Return A/c
Output CGST A/c
Output SGST A/c

Dr.
Dr.
Dr.

2,000
120
120

To Rakesh

2,240

(Goods returned by Rakesh and GST @ 6% reversed)

Jan 31

Salaries A/c

Dr.

20,000

To Cash A/c

20,000

(Paid office expenses and salaries in cash)

Suggest Corrections

Similar questions

Q. D.Chadha commenced business on 1st January, 2017. His transactions for the month are given below. Journalise them.

2018		₹
Jan. 1	Commenced business with cash	25,000
Jan. 2	Opened Bank Account with cheque from his Savings Account	2,25,000
Jan. 3	Bought goods from Ramesh & Co., Delhi, paid CGST and SGST @ 6% each	54,000
Jan. 3	Sold goods to Rajesh of ₹ 60,000, charged CGST and SGST @ 6% each
Jan. 7	Bought goods ₹ 65,000 from Rahul, Chennal, paid IGST @ 12%
Jan. 8	Paid wages in cash	8,000
Jan. 8	Sold goods to Mahesh, Kochi of ₹ 60,000; charged IGST @ 12%
Jan. 10	Received cheque from Rajesh(Discount allowed ₹ 1,200)	66,000
Jan. 10	Paid into bank	66,000
Jan. 11	Paid to Ramesh & Co. (discount received ₹ 2,700)	51,300
Jan. 12	Paid rent @ ₹ 15, 000 per month for three months up to March, paid CGST and SGST @ 6% each
Jan. 15	Paid wages in cash	8,000
Jan. 15	Paid office expenses in cash	700
Jan. 21	Sold to Mahesh, Delhi goods of ₹ 25,000, charged CGST and SGST @ 6% each
Jan. 22	Paid office expenses in cash	500
Jan. 22	Paid Rahul by cheque (discount ₹ 3,200)	61,300
Jan. 25	Received cheque from Mahesh Kochi (discount ₹ 1,500)	65,700
Jan. 27	Mahesh, Delhi returned goods (not up to sample)	2,000
Jan. 29	Paid wages in cash	10,000
Jan. 31	Paid office expenses in cash	400
Jan. 31	Paid salaries for the month	20,000

Q. On 1st March, 2019, Shri Kailash Chand, Lucknow commenced business with cash ₹ 50,000. The following are his transactions for the month of March, 2019. Record them in proper books, post them to the Ledger and take out a Trial Balance:


2019		₹
March 1	Bought goods for cash*	5,000
	Purchased from Hari, Lucknow*:
	5 Laptops @ ₹ 35,000 each
	5 Desktops @ ₹ 25,000 each
	Less: Trade Discount 15%
March 2	Purchased computer & printer from M/s. Computer Mart against cash for office use*	20,000
March 5	Deposited into bank	15,000
March 7	Sold goods to Shri Ramesh Chand, Kanpur*:
	2 Laptops @ ₹ 32,000 each
	2 Desktops @ ₹ 24,000 each
March 10	Received Cheque from Shri Ramesh Chand on account	75,000
March 14	Received another Cheque in full settlement from Ramesh Chand	49,440
March 15	Sold goods to Jagdish, Kolkata**:
	2 Laptops @ ₹ 35,000 each
	2 Desktops @ ₹ 25,000 each
	Less: Trade Discount 5%
March 18	Bought from Shyam Lal, Delhi**:
	10 Keyboards @ ₹ 1,000 each
	10 Mouse @ ₹ 500 each
March 20	Drew cash from bank for office	17,000
March 21	Paid to Shyam Lal in full settlement	16,500
March 23	Cash Sales 5 Keyboards @ ₹ 1,200 each and 5 Mouse @ ₹ 600 each*
March 25	Paid Salary	2,500
March 28	Paid Rent*	1,500
March 30	Paid into bank	5,000
March 31	Drew cash for personal expenses	500

Transactions marked with (*) are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked with (**) are inter-state transactions subject to IGST @ 12%.

Q. Suresh, Kanpur commenced business on 1st January, 2018 introducing capital in cash ₹ 1,00,000. His other transactions during the month were as follows:


2018		₹
Jan 1	Started business with cash	1,00,000
Jan 2	Bought goods for cash	20,000
Jan 3	Sold goods for cash	7,000
Jan 15	Sold goods to Shravan, Delhi	6,000
Jan 18	Bought goods on credit from Anurag, Kanpur	60,000
Jan 19	Goods returned to Anurag	5,000
Jan 20	Sold goods for cash	30,000
Jan 22	Paid electricity bill	1,000
Jan 28	Paid for telephone bill	500
Jan 29	Paid rent	800
Jan 31	Paid wages	3000

Enter the above transactions in his books of account

Q. On 1st January, 2019, Ram of Kolkata commenced business with a capital of ₹ 50,000 and entered into following transactions:
Pass the following transactions through proper books to the Ledger. Take out a Trial Balance as on 31st January, 2019. The Cash Book must be balanced.

2019		₹
Jan. 1	Opened a Bank Account and Deposited	12,500
	Purchased Goods against Cash Payment*	20,000
	Purchased furniture for Shop*	5,000
	Sold goods to R. Raman, Kolkata*	5,000
Jan. 2	Bought goods from Man Mohan, Delhi**	10,000
Jan. 3	Bought stationery and paid by cash	1,000
Jan. 5	Received cash from R. Raman	5,300
	Discount allowed to him	300
Jan. 6	Sold goods to Bimal, Kolkata*	7,500
Jan. 8	Bimal returned part of the goods supplied on the 6th instant	1,500
Jan. 10	Paid cash into bank	1,000
Jan. 12	Paid wages	1,500
Jan. 13	Bought on credit from the Union Furniture Co., Kolkata office desk*	1,500
Jan. 19	Paid wages	1,500
Jan. 21	Paid to Man Mohan by cheque	10,700
	Discount received	500
Jan. 21	Sold goods to Ramesh, Guwahati including IGST**	6,720
Jan. 22	Received cheque from Bimal	6,000
Jan. 23	Bought goods from Man Mohan, Delhi**	7,000
Jan. 24	Drew by cheque for personal use	2,000
Jan. 27	Paid wages	1,500
Jan. 31	Rent due to landlord*	1,000

Transactions marked with (*) are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked with (**) are inter-state transactions subject to IGST @ 12%.

Q. A commenced his cloth business on 1st April, 2018 with a capital of ₹ 30,000. On 31st March 2019, his assets were worth ₹ 50,000 and liabilities of ₹ 10,000. Find out his closing capital and profits earned during the year.

Join BYJU'S Learning Program

Books of D. Chadha Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan.01	Cash A/c	Dr.		25,000
	To Capital A/c				25,000
	(Started business with Cash)

Jan.02	Bank A/c	Dr.		2,25,000
	To Cash A/c				2,25,000
	(Opened Bank Account with his Savings Bank Account Cheque)

Jan.03	Purchases A/c Input CGST A/c Input SGST A/c	Dr. Dr. Dr.		54,000 3,240 3,240
	To Ramesh & Co				60,480
	(Bought goods from Ramesh & Co @ 6% CGST and SGST)

Jan.03	Rajesh	Dr.		67,200
	To Sales A/c To Output CGST A/c To Output SGST A/c				60,000 3,600 3,600
	(Sold goods to Rajesh @ 6% CGST and SGST)

Jan.07	Purchases A/c Input IGST A/c	Dr. Dr.		65,000 7,800
	To Rahul				72,800
	(Bought goods from Rahul @ 12% IGST)

Jan.08	Wages A/c	Dr.		800
	To Cash A/c				800
	(Paid Wages)

Jan.08	Mahesh	Dr.		67,200
	To Sales A/c To Output IGST A/c				60,000 7,200
	(Sold goods to Mahesh @ 12% IGST)

Jan.10	Bank A/c	Dr.		66,000
	Discount Allowed A/c	Dr.		1,200
	To Rajesh				67,200
	(Received cheque from Rajesh and discount allowed)

Jan.11	Ramesh & Co	Dr.		54,000
	To Cash A/c				51,300
	To Discount Received				2,700
	(Paid to Ramesh & Co and Discount Received)

Jan.12	Prepaid Rent A/c Input CGST A/c Input SGST A/c	Dr. Dr. Dr.		15,000 900 900
	To Cash A/c				16,800
	(Paid rent in advance upto March plus 6% CGST and SGST)

Jan 15	Expenses A/c	Dr.		700
	To Cash A/c				700
	(Paid office expenses in cash)

Jan.21	Rakesh	Dr.		28,000
	To Sales A/c To Output CGST A/c To Output SGST A/c				25,000 1,500 1,500
	(Sold goods to Rakesh)

Jan.22	Expenses A/c	Dr.		500
	To Cash A/c				500
	(Paid office expenses)

Jan.22	Rahul	Dr.		64,500
	To Bank A/c				61,300
	To Discount Received A/c				3,200
	(Paid to Rahul and discount received)

Jan.25	Bank A/c	Dr.		65,700
	Discount Allowed A/c	Dr.		1,500
	To Mahesh				67,200
	(Received Cheque from Mahesh, Kochi and discount allowed)

Jan.27	Sales Return A/c Output CGST A/c Output SGST A/c	Dr. Dr. Dr.		2,000 120 120
	To Rakesh				2,240
	(Goods returned by Rakesh and GST @ 6% reversed)

Jan 31	Salaries A/c	Dr.		20,000
	To Cash A/c				20,000
	(Paid office expenses and salaries in cash)