Question

Journalise the following in the books of Amit Saini, Gurugram (Haryana):
(i) Goods of ₹ 5,000 were taken by him for personal use.
(ii) ₹ 2,000 due from Sohan were bad debts.
(iii) Goods of ₹ 6,000 were destroyed by fire and were not insured.
(iv) Paid ₹ 4,000 in cash as wages on installation of machine. (GST is not to be levied).
(v) Sold goods to Arjun of Delhi of list price ₹ 20,000. Trade discount @ 10% and cash discount of 5% was allowed. He paid the amount on the same day and availed the cash discount.
(vi) Received ₹ 2,000 from Ramesh, whose account was written off as bad debts.
(vii) Goods costing ₹ 1,000 given as charity.
(viii) Received ₹ 9,750 from Ramesh in full settlement of his account of ₹ 10,000.
(ix) Paid rent in advance ₹ 4,000.
​CGST and SGST is to be levied on intra-state sale @ 6% each and IGST @ 12% on inter-state sale.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
(i)	Drawings A/c	Dr.		5,600
	To Purchases A/c				5,000
	To Input CGST A/c				300
	To Input SGST A/c				300
	(Goods used for personal use)
(ii)	Bad Debts A/c	Dr.		2,000
	To Sohan’s A/c				2,000
	(Debtors proved bad)
(iii)	Loss of Stock by Fire A/c	Dr.		6,720
	To Purchases A/c				6,000
	To Input CGST A/c				360
	To Input SGST A/c				360
	(Uninsured goods lost by fire)
(iv)	Machine A/c	Dr.		4,000
	To Cash A/c				4,000
	(Wages paid for installation of machine)
(v)	Cash A/c	Dr.		19,152
	Discount Allowed A/c	Dr.		1,008
	To Sales A/c				18,000
	To Output IGST A/c				2,160
	(Goods sold and discount allowed)
(vi)	Cash A/c	Dr.		2,000
	To Bad Debts Recovered A/c				2,000
	(Ramesh's debt written-off previously recovered)
(vii)	Charity A/c	Dr.		2,200
	To Purchases A/c				1,000
	To Input CGST A/c				600
	To Input SGST A/c				600
	(Goods given as charity)
(viii)	Cash A/c	Dr.		9,750
	Discount Allowed A/c	Dr.		250
	To Ramesh’s A/c				10,000
	(Received from Ramesh in full settlement)
(ix)	Prepaid Rent A/c	Dr.		4,000
	To Cash A/c				4,000
	(Paid rent in advance)