Question

Journalise the following transactions in the books of Manoj Store:
(i) Purchased goods from Ramesh ₹ 20,000 less Trade Discount at 20% plus IGST @ 12% .
(ii) Sold goods costing ₹ 7,000 to Krishna for ₹ 9,000 plus IGST @ 12%.
(iii) Sold goods for ₹ 10,000 and charged IGST @ 12% against cheque.
(iv) ₹ 5,000 were deposited into Savings Account.
(v) Machinery costing ₹ 4,00,000 for which order was placed earlier paying advance of ₹ 40,000. The balance amount was paid as follows:
(a) An old machine (personal) valued at ₹ 30,000 was given in exchange;
(b) Issued a cheque from his savings account for ₹ 1,30,000; and
(c) Balance by issue cheque from firm's bank account.
(vi) Paid wages ₹ 2,500 for installation of machine.

Answer 1

Books of Manoj Store
Journal
Date	Particulars			L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Purchases A/c		Dr.		18,000
	Input IGST A/c		Dr.		2,160
		To Ramesh’s A/c				20,160
	(Goods purchased from Ramesh at 20% trade discount plus IGST @ 12%)
(ii)	Krishna‘s A/c		Dr.		10,080
		To Sales A/c				9,000
		To Output IGST A/c				1,080
	(Goods worth Rs 7,000 sold to Krishna for Rs 9,000 plus IGST @ 12%)
(iii)	Bank A/c		Dr.		11,200
		To Sales A/c				10,000
		To Output IGST A/c				1,200
	(Goods worth Rs 10,000 sold and IGST charged @ 12%)
(iv)	Bank A/c		Dr.		5,000
		To Cash A/c				5,000
	(Cash deposited into Savings A/c)
(v)	Machinery A/c		Dr.		4,00,000
	To Advance (on order)					40,000
	To Capital A/c (Note)					1,60,000
	To Bank A/c					2,00,000
	(Machinery purchased for exchange of personal machine and by issuing cheque)
(vi)	Machinery A/c		Dr.		2,500
	To Cash A/c					2,500
	(Wages paid for installation of machine)

Note: An old machine(personal) given in exchange of Rs 30,000 and cheque of Rs 1,30,000 from Saving A/c will increase the Capital A/c of proprietor.