Question

Record the following transactions in the Journal of Ashoka Furniture Traders, Ludhiana (Punjab):

2019		₹
Jan. 1	Started business with cash	50,000
Jan. 2	Opened a Current Account by personal cheque	3,50,000
Jan. 10	Purchased machinery against cheque	1,00,000
Jan. 15	Paid wages for installation of machinery	2,000
Jan. 20	Purchased timber from Singh & Co., Ludhiana (Punjab) of the list price of ₹ 20,000 at 10% trade discount
Jan. 25	Out of the above, timber used for furnishing the office	5,000
Jan. 31	Sold timber to Rakesh of the list price of ₹ 10,000 and allowed him 10% trade discount
Feb. 10	Issued to Singh & Co. a cheque in full settlement	20,000
Feb. 15	Received from Rakesh in full and final settlement	10,000
Feb. 20	Paid Wages	15,000
Feb. 28	Issued a cheque for ₹ 5,000 in favour of the landlord for rent of February

CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase.

Answer 1

Journal
Date	Particulars		L.F	Debit Amount (Rs)	Credit Amount (Rs)
2019
Jan.01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Started business with Cash)
Jan.02	Bank A/c	Dr.		3,50,000
	To Cash A/c				3,50,000
	(Deposited cash into bank )
Jan.10	Machinery A/c Input CGST A/c Input SGST A/c	Dr.		1,00,000 6,000 6,000
	To Bank A/c				1,12,000
	(Purchased machinery @ 6% CGST and SGST)
Jan.15	Machinery A/c	Dr.		2,000
	To Cash A/c				2,000
	(Paid installation charges )
Jan.20	Purchase A/c Input CGST A/c Input SGST A/c	Dr.		18,000 1,080 1,080
	To Singh & Co.				20,160
	(Purchased timber @ 6% CGST and SGST)
Jan.25	Furniture A/c	Dr.		5,600
	To Purchases A/c To Input CGST A/c To Input SGST A/c				5,000 300 300
	(Timber used for office furniture and GST reversed)
Jan.31	Rakesh A/c	Dr.		10,080
	To Sales A/c To Output CGST A/c To Output SGST A/c				9,000 540 540
	(Sold goods to Rakesh @ 6% CGST and SGST)
Feb.10	Singh & Co.	Dr.		20,160
	To Bank A/c				20,000
	To Discount Received A/c				160
	(Sent cheque to Singh & Co. and discount received)
Feb.15	Cash A/c	Dr.		10,000
	Discount Allowed A/c	Dr.		80
	To Rakesh				10,080
	(Received Cash from Rakesh and discount allowed)
Feb.20	Wages A/c	Dr.		15,000
	To Cash A/c				15,000
	(Paid wages)
Feb.25	Rent A/c	Dr.		5,000
	To Bank A/c				5,000
	(Paid rent)

Note: In the entry dated Feb 10 the amount paid exceeds the amont due to Singh and Co. and in the entry dated Feb 15 the amont received exceeds the amount due from Rakesh. These 2 are not possible. So, the amont paid and received has been assumed.