Question

(Transfer Entries). Give the Journal entries for the following:
(i) Gross Profit of ₹ 32,000 from Trading Account to Profit and Loss Account.
(ii) Net Profit of ₹ 14,500 to Capital Account of Sri Sankar Saha.
(iii) Sri Sankar Saha draws ₹ 10,000 from his Capital Account.
(iv) Purchases Return of ₹ 7,000 plus IGST @ 12%.
(v) Sales Return of ​₹ 6,000 plus CGST and SGST @ 6% each.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Trading A/c	Dr.		32,000
	To Profit & Loss A/c				32,000
	(Transfer of gross profit to Profit &Loss A/c)
(ii)	Profit & Loss A/c	Dr.		14,500
	To Sri Sankar Saha’s Capital A/c				14,500
	(Transfer of net profit to Capital A/c)
(iii)	Sri Sankar Saha’s Capital A/c	Dr.		10,000
	To Drawings A/c				10,000
	(Withdrawals from capital)
(iv)	Cash A/c	Dr.		7,840
	To Purchases Return A/c				7,000
	To Input IGST A/c				840
	(Goods returned by us)
(v)	Sales Return A/c	Dr.		6,000
	Output CGST A/c	Dr.		360
	Output SGST A/c	Dr.		360
	To Cash A/c				6,720
	(Goods returned by customers)