Give journal entries for the following adjustments in final accounts assuming CGST and SGST @ 9% each:
(i) Closing Stock ₹ 80,000.
(ii) Outstanding salaries ₹ 21,000.
(iii) Insurance premium amounting to ₹ 15,000 is paid in advance.
(iv) ₹ 9,000 received for rent related to the next accounting period.
(v) Commission accrued but not received during the accounting year ₹ 1,500.
(vi) Write off ₹ 500 as further bad debts.
(vii) Goods costing ₹ 8,000 destroyed by fire and insurance company admitted a claim for ₹ 5,000 only.
(viii) Goods costing ₹ 10,000 (Market value ₹ 11,000) were taken by proprietor for personal use.

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Solution

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

(i)

Closing Stock A/c

Dr.

80,000

To Trading A/c

80,000

(Transfer of Closing Stock to Trading A/c)

(ii)

Salary A/c

Dr.

21,000

To Outstanding Salary A/c

21,000

(Outstanding salaries)

(iii)

Prepaid Insurance A/c

Dr.

15,000

To Insurance A/c

15,000

(Insurance premium paid in advance)

(iv)

Rent A/c

Dr.

9,000

To Rent Received in Advance A/c

9,000

(Rent received in advance)

(v)

Accrued Commission A/c

Dr.

1,770

To Commission A/c

1,500

To Output CGST A/c

135

To Output SGST A/c

135

(Commission accrued but not received)

(vi)

Bad Debts A/c

Dr.

500

To Debtors A/c

500

(Write off further bad debts)

(vii)

Loss by Fire A/c

Dr.

9,440

To Purchases A/c

8,000

To Input CGST A/c

720

To Input SGST A/c

720

(Loss of goods by fire)

Insurance Company A/c

Dr.

5,000

Profit & Loss A/c

4,440

To Loss by Fire A/c

9,440

(Insurance company admitted claim)

(viii)

Drawings A/c

Dr.

11,800

To Purchases A/c

10,000

To Input CGST A/c

900

To Input SGST A/c

900

(Goods withdrawn by proprietor for personal use)

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Similar questions

Q. Give journal entries for the following adjustments in final accounts:
(i) Salaries ₹ 5,000 are outstanding.
(ii) Insurance amounting to ₹ 2,000 is paid in advance.
(iii) ₹ 4,000 for rent have been received in advance.
(iv) Commission earned but not received ₹ 1,000.
(v) Interest on capital ₹ 1,500.
(vi) Interest on Drawings ₹ 300.
(vii) Write off ₹ 2,000 as further bad-debts.
(viii) Closing Stock ₹ 3,000.

Q. Prove that the Accounting Equation is satisfied in all the following transactions of Sameer Goel:
(i) Started business with cash ₹ 10,000.
(ii) Paid rent in advance ₹ 300.
(iii) Purchased goods for cash ₹ 5,000 and credit ₹ 2,000.
(iv) Sold goods for cash ₹ 8,000 costing ₹ 4,000.
(v) Paid salary ₹ 450 and salary outstanding being ₹ 100.
(vi) Bought motorcycle for personal use ₹ 3,000.

Q. Journalise the following transactions:
(i) Bought goods from Arun for ₹ 2,00,000 at a trade discount of 15% and cash discount of 2%. Paid 80% amount immediately.
(ii) Purchased foods for ₹ 20,000 from X and supplied it to Y for ₹ 26,000.
(iii) Cash withdrawn from bank ₹ 5,000 for personal use and ₹ 25,000 for office use.
(iv) Goods destroyed by fire : Cost Price ₹ 40,000.
(v) Provide 20% depreciation on machinery costing ₹ 50,000.
(vi) Out of insurance paid this year, ₹ 3,000 is related to next year.
(vii) Allow ₹ 5,000 as interest on capital and charge ₹ 1,000 as interest on drawings.
(viii) Sohan who owed us ₹ 25,000 was declared insolvent and a cheque of 40 paise in a ₹ is received from him in full settlement.
(ix) Paid Income Tax ₹ 10,000 by cheque.
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Q. Draw an Accounting Equation on the basis of the following transactions:
(i) Commenced business with cash ₹ 50,000, cheque ₹ 1,00,000, goods ₹ 30,000 and furniture ₹ 20,000.
(ii) Car, personal asset of the proprietor, was sold for ₹ 1,00,000 against cheque which he deposited in his Savings Account.
(iii) An amount of ₹ 50,000 was transferred from his Savings Account to the firm's Bank Account.
(iv) A new car was purchased for ₹ 6,00,000 for office use. It was paid by taking loan from Bank of ₹ 5,00,000 and balance by issue of cheque from firm's Bank Account .
(v) Sold goods to Ajay on credit costing ₹ 4,000 for ₹ 5,000.
(vi) Sold goods for cash costing ₹ 12,000 for ₹ 16,000
(vii) Purchased good for cash ₹ 40,000
(viii) Purchased goods on credit for ₹ 20,000.
(ix) Paid rent ₹ 3,000 including ₹ 2,000 in advance .
(x) Paid salaries ₹ 2,000.
(xi) Sold goods costing ₹ 8,000 for ₹ 10,000.
(xii) Salaries outstanding ₹ 1,000.
(xiii) Charge depreciation on furniture ₹500.

Q. 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 salary of ₹ 60,000.
(iv) Sold goods to Bharat, Kaithal (Haryana) of ₹ 10,000 plus IGST @ 12% out of which 1/5th were returned 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.
(vii) 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) ABC & Co. 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 ₹ 12,000 plus 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.
(xiv) Purchased machinery for ₹ 56,000 including IGST of ₹ 6,000 and paid cartage thereon ₹ 5,000 and installation charges ₹ 10,000.
(xv) Goods costing ₹ 40,000 sold to Mr. X 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 by means of a bank draft purchased from bank. Paid charges ₹ 500.

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Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)

(i)	Closing Stock A/c	Dr.		80,000
	To Trading A/c				80,000
	(Transfer of Closing Stock to Trading A/c)

(ii)	Salary A/c	Dr.		21,000
	To Outstanding Salary A/c				21,000
	(Outstanding salaries)

(iii)	Prepaid Insurance A/c	Dr.		15,000
	To Insurance A/c				15,000
	(Insurance premium paid in advance)

(iv)	Rent A/c	Dr.		9,000
	To Rent Received in Advance A/c				9,000
	(Rent received in advance)

(v)	Accrued Commission A/c	Dr.		1,770
	To Commission A/c				1,500
	To Output CGST A/c				135
	To Output SGST A/c				135
	(Commission accrued but not received)

(vi)	Bad Debts A/c	Dr.		500
	To Debtors A/c				500
	(Write off further bad debts)

(vii)	Loss by Fire A/c	Dr.		9,440
	To Purchases A/c				8,000
	To Input CGST A/c				720
	To Input SGST A/c				720
	(Loss of goods by fire)

	Insurance Company A/c	Dr.		5,000
	Profit & Loss A/c			4,440
	To Loss by Fire A/c				9,440
	(Insurance company admitted claim)

(viii)	Drawings A/c	Dr.		11,800
	To Purchases A/c				10,000
	To Input CGST A/c				900
	To Input SGST A/c				900
	(Goods withdrawn by proprietor for personal use)