SUBODH PUBLIC SCHOOL, RAMBAGH CROSSING
Chapter 10:-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
LEARNING OUTCOMES After studying this chapter, you should be able to understand:-
* Meaning of GST
*Taxes merged into GST
*GST rate structure
*Objectives or Advantages of GST
*Type of Taxes under GST(Tax structure under GST)
*Accounting Procedure
REFERENCES -1.N.C.E.R.T
2.Extramarks
SUBODH PUBLIC SCHOOL, RAMBAGH CROSSING
Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 18,2020
Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following for
detailed understanding.
SUBODH PUBLIC SCHOOL, RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
GST Meaning – GST is Goods and Service Tax is an indirect tax which the Government of India is
planning to levy on all goods and services apart from those exempted by the GST law. The sole purpose
of GST is to put an end to multiple taxes like excise, CST, VAT, service tax which are levied on different
products, starting from the source of manufacturing, till reaching the end consumer.
It is a nation –wide tax seeking to unify several indirect taxes and is based on the principle of
“One Nation one Tax”.
GST Act was passed in the Parliament on 24 th March ,2017 and it came into effect from 1 st
July,2017.
Taxes merged into GST—
GST has replaced many indirect taxes levied by Central and state Governments.
The following erstwhile state and central taxes have been subsumed in GST.
Central Taxes:
Central Excise Duty
Service Tax
Duties of Excise (Medicinal and Toilet Preparations)
Additional Duties of Excise (Goods of Special Importance)
Additional Duties of Excise (Textiles and Textile Products)
Additional Duties of Customs (commonly known as CVD)
Special Additional Duty of Customs (SAD)
Central Surcharges and Cesses so far as they relate to supply of goods and services
State Taxes :
State VAT :
Central Sales Tax
Luxury Tax
Entry Tax (all forms)
Entertainment and Amusement Tax (except when levied by the local bodies)
Taxes on advertisements
Purchase (Entry) Tax
Taxes on lotteries, betting and gambling
State Surcharges and Cesses so far as they relate to supply of goods and services
Central, State and Local levies were subsumed under GST based on fact that
1. It should be primarily in the nature of indirect taxes, either on the supply of goods/services.
SUBODH PUBLIC SCHOOL, RAMBAGH CROSSING
Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST) 2. It should be part of the transaction chain which commences with import/manufacture/production of
goods and/or provision of services at one end and the consumption of goods and services at the other.
3. The subsumation should result in free flow of tax credit in intra and inter-State levels. The taxes,
levies and fees that are not specifically related to supply of goods & services should not be subsumed
under GST.
4. Revenue fairness for both the Union and the States individually would need to be attempted.
GST Rate Structure--
Goods and Services are divided into five slabs for collection of GST:--
Essential Items including food 0 %
Common Use Items 5 %
Standard Rate 12 %
Maximum Goods and all services Standard Rate 18%
Luxury Items and tobacco 28%
GST is paid on purchase of goods and services and it is collected from customers on sale of goods and
services .GST Paid (termed as Input GST)is set off against GST Collected(termed as Output GST)
As such, GST Paid on Purchase (Input GST) is not a Cost for the purchaser but is an Asset
since it can be set off against GST Collected on Sales (i.e., Output GST).Similarly ,GST Collected on Sales
(Output GST)is not an income of the seller but is a liability.
Characteristics of Goods and Service Tax(GST)---
1.GST is a Comprehensive Indirect Tax.
2.Uniform GST Rates
3.GST paid is not a Cost.
4.GST is a Value Added Tax.
Objectives or Advantages of GST ---
a. No cascading of taxes
b. Reduced compliance cost
c. Seamless flow of credit
d. Less wastage of time and effort to comply
e. Few number of taxes
f. Transparent and corruption free
g. Supportive to compete at Domestic and International Market
h. Buoyancy in tax collection both for Central and State/UT
i. Tax impact on inflation should be minimaL
SUBODH PUBLIC SCHOOL, RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 19,2020 Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following for
detailed understanding.
SUBODH PUBLIC SCHOOL, RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST) TYPES OF TAXES UNDER GST--
As per the newly implemented tax system, there are 4 different types of GST:
1.Integrated Goods and Services Tax (IGST)
2.State Goods and Services Tax (SGST)
3.Central Goods and Services Tax (CGST)
4.Union Territory Goods and Services Tax (UTGST)
Additionally, the government has fixed different taxation rates under each, which will be
applicable to the payment of tax for goods and/or services rendered.
1. Integrated Goods and Services Tax or IGST
The Integrated Goods and Services Tax or IGST is a tax under the GST regime that is applied on the
interstate (between 2 states) supply of goods and/or services as well as on imports and exports.
The IGST is governed by the IGST Act. Under IGST, the body responsible for collecting the taxes is
the Central Government. After the collection of taxes, it is further divided among the respective
states by the Central Government. For instance, if a trader from West Bengal has sold goods to a
customer in Karnataka worth Rs.5,000, then IGST will be applicable as the transaction is an
interstate transaction. If the rate of GST charged on the goods is 18%, the trader will charge
Rs.5,900 for the goods. The IGST collected is Rs.900, which will be going to the Central Government.
2. State Goods and Services Tax or SGST
The State Goods and Services Tax or SGST is a tax under the GST regime which is applicable on
intrastate (within the same state) transactions. In case of intrastate supply of goods and/or
services, both State GST and Central GST are levied. However, the State GST or SGST is levied by the
state on the goods and/or services that are purchased or sold within the state. It is governed by the
SGST Act. The revenue earned through SGST is solely claimed by the respective state government.
For instance, if a trader from West Bengal has sold goods to a customer in West Bengal worth
Rs.5,000, then the GST applicable on the transaction will be partly CGST and partly SGST. If the rate
of GST charged is 18%, it will be divided equally in the form of 9% CGST and 9% SGST. The total
amount to be charged by the trader, in this case, will be Rs.5,900. Out of the revenue earned from
GST under the head of SGST, i.e. Rs.450, will go to the West Bengal state government in the form of
SGST.
3. Central Goods and Services Tax or CGST
SUBODH PUBLIC SCHOOL, RAMBAGH CROSSING Chapter 10:-ACCOUNTING FOR GOODS AND SERVICE TAX (GST) Just like State GST, the Central Goods and Services Tax of CGST is a tax under the GST regime which
is applicable on intrastate (within the same state) transactions. The CGST is governed by the CGST
Act. The revenue earned from CGST is collected by the Central Government. As mentioned in the
above instance, if a trader from West Bengal has sold goods to a customer in West Bengal worth
Rs.5,000, then the GST applicable on the transaction will be partly CGST and partly SGST. If the rate
of GST charged is 18%, it will be divided equally in the form of 9% CGST and 9% SGST. The total
amount to be charged by the trader, in this case, will be Rs.5,900. Out of the revenue earned from
GST under the head of CGST, i.e. Rs.450, will go to the Central Government in the form of CGST.
4. Union Territory Goods and Services Tax or UTGST
The Union Territory Goods and Services Tax or UTGST is the counterpart of State Goods and
Services Tax (SGST) which is levied on the supply of goods and/or services in the Union Territories
(UTs) of India. The UTGST is applicable on the supply of goods and/or services in Andaman and
Nicobar Islands, Chandigarh, Daman Diu, Dadra and Nagar Haveli, and Lakshadweep. The UTGST is
governed by the UTGST Act. The revenue earned from UTGST is collected by the Union Territory
government. The UTGST is a replacement for the SGST in Union Territories. Thus, the UTGST will be
levied in addition to the CGST in Union Territories.
NOTE—If the GST rate is 12 %,it will comprise of 6 % CGST + 6% SGST ;in case of sales outside the
State, it will be called IGST 12 %.
Similarly ,If the GST rate is 18 % ,it will comprise of 9 % SGST ,in case of sales outside the state, it
will be called 18 % .And so on.
Reverse Charge—Certain purchases of goods and services are placed under reverse
charge.
Reverse charge means that GST is not charged by the seller but is paid by the purchaser to the
Government and claim it as Input GST. Goods and services placed under Reverse charge are:
Purchase of goods and services by Registered Dealer from Unregistered Person ,Payment of fee to
Lawyers ,Use of Copyright ,Transport of goods, Insurance Commission etc.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 20,2020 Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST) ACCOUNTING PROCEDURE--
* In case of Intra state supply of goods and services— 1.For purchase of goods—
Purchase A/c Dr.
Input CGST A/c. Dr.
Input SGST A/c Dr.
To Bank/Creditors A/c.
(Goods Purchased)
2.For Sale of goods---
Bank /Debtors A/c Dr.
To Sales A/c
To Output CGST A/c
To Output SGST A/c
(Goods Sold)
3.For Purchase Return---
Creditors A/c Dr.
To Purchase Return A/c
To Input CGST A/c
To Input SGSTA/c
(Purchase Return)
4.For Sales Return—
Sales Returns A/c Dr.
Output CGST A/c Dr.
Output SGST A/c Dr.
To Debtors A/c
(Sales Returns)
5.For Purchase of fixed Assets—
Fixed Assets A/c Dr.
Input CGST A/c Dr.
Input SGST A/c Dr.
To Bank A/c
(Being Purchase of fixed assets)
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10- ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 21,2020 Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST) In case of sales returns, Output CGST A/c and Output SGST A/cs. are debited because at the
time of sale Output CGST A/c. and Output SGST A/cs. were credited.
6.For Expenses—
Expenses A/c Dr.
Input CGST A/c Dr.
Input SGST A/c Dr.
To Bank A/c
(Expenses incurred)
7.For Income—
Bank A/c Dr.
To Commission Received A/c
To Output CGST A/c
To Output SGST A/c
(Income received)
8.For goods withdrawn by the Proprietor for personal use –
Drawings A/c Dr.
To Purchases A/c
To Input CGST A/c
To Input SGST A/c
(Goods taken for personal use )
9. For goods given as free samples ,loss of goods by fire or goods stolen –
Advertisement A/c Dr.
Loss by Fire A/c Dr.
Loss by Theft A/c Dr.
To Purchases A/c
To Input CGST A/c
To Input SGST A/c
(Goods distributed as free samples ,goods stolen and goods destroyed by fire and Input
CGST and Input SGST reversed)
10.For setting off Input CGST against Output CGST :
Output CGST A/c Dr.
To Input CGST A/c
(Input CGST set off against Output CGST )
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST) 11.For setting off Input SGST against Output SGST –
Output SGST A/c Dr.
To Input SGST A/c
(Input SGST set off against Output SGST )
12.For payment of GST –
Output CGST A/c Dr.
Output SGST A/c Dr.
To Bank A/c
(Balance amount of Output GST deposited with the Government )
GST NOT LEVIED –
1.Amount introduced into the business by proprietor as Capital.
2.Amount withdrawn by the proprietor for personal use.
3.Amount deposited into Bank.
4.Amount withdrawn from Bank.
5.Amount paid to Creditors and discount received.
6.Amount received from Debtors and discount allowed.
7.Bad-debts written off and bad –debts recovered.
8.Payment of wages and Salary.
9.Payment of Electricity and Water Bills.
10.Payment of Travelling Expenses.
* In case of Inter-state supply of goods and services (Sales from
one state to another state )
1.For purchase of Goods –
Purchases A/c Dr.
Input IGST A/c Dr.
To Bank /Creditors
2.For sale of Goods—
Bank /Debtors A/c Dr
To Sales A/c
To Output IGST A/c
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST) 3.For Purchase of Assets—
Assets A/c Dr.
Input IGST A/c Dr.
To Bank A/c
4.For Expenses incurred Outside the state -
Expenses A/c Dr.
Input IGST A/c Dr.
To Bank A/c
5.For Income earned from outside the state –
Bank A/c Dr.
To Income A/c
To Output IGST A/c
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 22,2020
Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING
Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
Question 1:
Pass entries in the books of Mukerjee & Sons. assuming all transactions have taken place
within the state of Uttar Pradesh. Assume CGST @9% and SGST @ 9%.
2018
March 1 Purchased goods for Rs.5,00,000 from Mehta Bros.
March
10
Sold goods for Rs.8,00,000 to Munjal & Co.
March
15
Paid for advertisement Rs.40,000 by cheque.
March
18
Purchased furniture for office use Rs.50,000 and payment made
by cheque.
March
25 Paid for printing and stationery Rs.8,000.
March
31
Payment made of balance amount of GST.
ANSWER:
Journal
Date Particulars L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs.)
2018
Mar 04 Purchases A/c Dr. 5,00,000
Input CGST A/c Dr. 45,000
Input SGST A/c Dr. 45,000
To Mehta Bros. A/c 5,90,000
(Purchased from Mehta Bros.)
Mar 10 Munjal & Co. A/c Dr. 9,44,000
To Sales A/c 8,00,000
To Output CGST A/c 72,000
To Output SGST A/c 72,000
(Sold goods to Munjal & Co.)
Mar 15 Advertisement A/c Dr. 40,000
Input CGST A/c Dr. 3,600
Input SGST A/c Dr. 3,600
To Bank A/c 47,200
(Paid for advertisement)
Mar 18 Furniture A/c Dr. 50,000
Input CGST A/c Dr. 4,500
Input SGST A/c Dr. 4,500
To Bank A/c 59,000
(Purchased office furniture)
Mar 25 Printing & Stationery A/c Dr. 8,000
Input CGST A/c Dr. 720
Input SGST A/c Dr. 720
To Cash A/c 9,440
(Paid for printing and stationery)
Mar 31 Output CGST A/c Dr. 53,820
Output SGST A/c Dr. 53,820
To Input CGST A/c 53,820
To Input SGST A/c 53,820
(Input tax credit availed)
Mar 31 Output CGST A/c Dr. 18,180
Output SGST A./c Dr. 18,180
To Bank A/c 36,360
(Balance tax paid to government)
17,93,640 17,93,640
Question 2:
Pass entries in the books of Devdhar & Bros. Odisha, assuming all transactions have been
entered within the state, charging CGST and SGST @ 9% each:
2018
March 4 Purchased goods for Rs.5,00,000 from Sunil Bros.
7 Goods returned to Sunil Bros. for Rs.20,000
10 Sold goods to Mehta & Co. for Rs.8,00,000
12 Goods returned by Mehta & Co. for Rs.30,000
20 Goods withdrawn by Proprietor for personal use Rs.10,000
25 Goods distributed as free samples Rs.5,000
26 Paid advertisement expenses by cheque Rs.20,000
31 Payment made of balance amount of GST.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 23,2020
Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING
Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
ANSWER:
Journal
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2018
Mar 04 Purchases A/c Dr. 5,00,000
Input CGST A/c Dr. 45,000
Input SGST A/c Dr. 45,000
To Sunil Bros. A/c 5,90,000
(Purchased from Sunil Bros.)
Mar 07 Sunil Bros. A/c Dr. 23,600
To Purchases Return A/c 20,000
To Input CGST A/c 1,800
To Input SGST A/c 1,800
(Goods returned to Sunil Bros.)
Mar 10 Mehta& Co. A/c Dr. 9,44,000
To Sales A/c 8,00,000
To Output CGST A/c 72,000
To Output SGST A/c 72,000
(Sold goods to Mehta& Co.)
Mar 12 Sales Return A/c Dr. 30,000
Output CGST A/c Dr. 2,700
Output SGST A/c Dr. 2,700
To Mehta & Co. A/c 35,400
(Goods returned by Mehta & Co.)
Mar 20 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 for personal use)
Mar 25 Free Samples A/c Dr. 5,900
To Purchases A/c 5,000
To Input CGST A/c 450
To Input SGST A/c 450
(Goods distributed as free samples)
Mar 26 Advertisement A/c Dr. 20,000
Input CGST A/c Dr. 1,800
Input SGST A/c Dr. 1,800
To Bank A/c 23,600
(Paid for advertisement)
Mar 31 Output CGST A/c Dr. 43,650
Output SGST A/c Dr. 43,650
To Input CGST A/c 43,650
To Input SGST A/c 43,650
(Input tax credit availed)
Mar 31 Output CGST A/c Dr. 25,650
Output SGST A./c Dr. 25,650
To Bank A/c 51,300
(Balance tax paid to government)
17,72,900 17,72,900
Question 3:
Pass entries in the books of Ganguli & Sons. assuming all transactions have been entered
in the state of West Bengal:
(i) Purchased goods for Rs.2,00,000 and payment made by
cheque.
(ii) Sold goods for Rs.1,60,000 to Devki Nandan & Sons.
(iii) Purchased goods for Rs.50,000 on credit.
(iv) Paid for printing and stationery Rs.4,000.
(v) Received for commission Rs.5,000.
(vi) Output GST adjusted against Input GST.
Assume CGST @ 6% and SGST @ 6%.
ANSWER:
Journal
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
Purchases A/c Dr. 2,00,000
Input CGST A/c Dr. 12,000
Input SGST A/c Dr. 12,000
To Cheque A/c 2,24,000
(Purchased goods and paid by cheque)
Devki Nandan & Sons A/c Dr. 1,79,200
To Sales A/c 1,60,000
To Output CGST A/c 9,600
To Output SGST A/c 9,600
(Sold goods toDevki Nandan & Sons)
Purchases A/c Dr. 50,000
Input CGST A/c Dr. 3,000
Input SGST A/c Dr. 3,000
To Creditor A/c 56,000
(Purchased goods on credit)
Printing & Stationery A/c Dr. 4,000
Input CGST A/c Dr. 240
Input SGST A/c Dr. 240
To Cash A/c 4,480
(Paid for printing and stationery)
Cash A/c Dr. 5,600
To Commission Received A/c 5,000
To Output CGST A/c 300
To Output SGST A/c 300
(Interest received)
Output CGST A/c Dr. 9,900
Output SGST A/c Dr. 9,900
To Input CGST A/c 9,900
To Input SGST A/c 9,900
(Input tax credit availed)
4,89,080 4,89,080
Input CSGT (Balance) = Rs 5,340
Input SGST (Balance) = Rs 5,340
Question 4:
Pass entries for the following transactions in the books of M/s Karthikeyan & Co. of
Chennai:
2019
June 10 Purchased goods from Ravichandran of Madurai of the list price of
Rs.2,00,000 at 25% trade discount at 4% cash discount on purchase price of
goods. Paid CGST and SGST @ 9% each. Paid the entire amount by cheque
on the same date.
June 25 Sold goods to Ramalingam of Erode of the list price of Rs.3,75,000 at 20%
trade discount and 2% cash discount on sale price. Charged CGST and SGST
@ 9% each. Full amount was received by cheque on the same date.
Ignore adjustment and payment of GST.
ANSWER:
Journal
In the books of M/s Karthikeyan & Co.
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2019
June 10 Purchases A/c Dr. 1,50,000
Input CGST A/c Dr. 13,500
Output SGST A/c Dr. 13,500
To Bank A/c 1,71,000
To Discount received A/c 6,000
(purchases from Ravichandaran @25% T.D. &
4% cash discount)
June 25 Bank A/c Dr. 3,48,000
Discount Allowed A/c Dr. 6,000
To Sales A/c 3,00,000
To Output CGST A/c 27,000
To Output SGST A/c 27,000
(goods sold to Ramalingam @20% T.D. & 2%
cash discount)
TOTAL 5,31,000 5,31,000
Working Note:
(1) Calculation of the amount paid on purchases
List price of goods purchased 2,00,000
Less: trade discount @ 25% (50,000)
1,50,000
Add: Input CGST @ 9% 13,500
Output SGST @ 9% 13,500 27,000
1,77,000
Less: Cash discount @ 4% (6,000)
Amount payable 1,71,000
(2) Calculation of the amount received on sales
List price of goods sold 3,75,000
Less: trade discount @ 20% (75,000)
3,00,000
Add: Input CGST @ 9% 27,000
Output SGST @ 9% 27,000 54,000
3,54,000
Less: Cash discount @ 2% (6,000)
Amount payable 3,48,000
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 24,2020
HOLIDAY
Eid ul fitr
* Revise the previous topics
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 25,2020
HOLIDAY
MAHARANA PRATAP JAYANTI
* Revise the previous topics
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10:-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 26,2020
Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING
Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
Question 5:
Record the following transactions in the books of Sahdev & Sons assuming all transactions
have been entered within the state of Bihar, Charging CGST and SGST @ 9% each.
(i) Bought goods from Nanak Bros. for Rs.4,00,000 at 10% trade
discount and 3% cash discount on purchase price. 25% of the
amount paid at the time of purchase.
(ii) Sold goods to Kumar & Sons. for Rs.2,00,000 at 20% trade
discount and 5% cash discount on sale price. 60% of the
amount received by Cheque.
(iii) Received from Gopi Chand Rs.38,000 by Cheque after
deducting 5% cash discount.
(iv) Paid Rs.20,000 for rent by Cheque.
(v) Paid Rs.50,000 for salaries by Cheque.
(vi) Goods worth Rs.10,000 distributed as free samples.
(vii) Rs.5,000 due from Chanderkant are bad-debts.
(viii) Sold household furniture for Rs.15,000 and the proceeds were
invested into business.
ANSWER:
Journal
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
Purchases A/c Dr. 3,60,000
Input CGST A/c Dr. 32,400
Input SGST A/c Dr. 32,400
To Cash A/c 1,03,014
To Nanak Bros. A/c 3,18,600
To Discount Received A/c 3,186
(Purchased goods)
Kumar & Sons A/c Dr. 75,520
Bank A/c 1,07,616
Discount Allowed A/c 5,664
To Sales A/c 1,60,000
To Output CGST A/c 14,400
To Output SGST A/c 14,400
(Sold goods)
Bank A/c Dr. 38,000
Discount Allowed A/c Dr. 2,000
To Gopi Chand A/c 40,000
(Received from Gopi Chand in full settlement)
Rent A/c Dr. 20,000
Input CGST A/c Dr. 1,800
Input SGST A/c Dr. 1,800
To Bank A/c 23,600
(Paid for rent)
Salaries A/c Dr. 50,000
To Bank A/c 50,000
(Paid salaries)
Advertisement A/c Dr. 11,800
To Purchases A/c Dr. 10,000
To Input CGST A/c Dr. 900
To Input SGST A/c 900
(Goods distributed as free samples)
Bad Debts A/c Dr. 5,000
To Chanderkant A/c 5,000
(Debtor proved bad)
Cash A/c Dr. 15,000
To Capital A/c 15,000
(Invested money into business)
7,59,000 7,59,000
Question 6:Pass entries in the books of Mr. Roopani of Gujarat assuming CGST @ 9% and SGST@ 9%.
(i) Purchased goods for Rs.2,00,000 from Suryakant of Jaipur
(Rajasthan) on Credit.
(ii) Sold goods for Rs.1,50,000 to Mr. Pawar of Mumbai
(Maharashtra) and the cheque received was sent to bank.
(iii) Sold goods for Rs.2,50,000 within the state on credit.
(iv) Paid insurance premium of 20,000 by cheque.
(v) Purchased furniture for office for Rs.60,000 by cheque.
(vi) Payment made of balance amount of GST.
ANSWER:
Journal
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
(i) Purchases A/c Dr. 2,00,000
Input IGST A/c 36,000
To Suryakant’s A/c 2,36,000
(Purchased goods on credit)
(ii) Bank A/c Dr. 1,77,000
To Sales A/c 1,50,000
To Output IGST A/c 27,000
(Sold goods and received cheque)
(iii) Debtors A/c Dr. 2,95,000
To Sales A/c 2,50,000
To Output CGST A/c 22,500
To Output SGST A/c 22,500
(Goods sold on credit)
(iv) Insurance Premium A/c Dr. 20,000
Input CGST A/c Dr. 1,800
Input SGST A/c Dr. 1,800
To Bank A/c 23,600
(Paid for insurance premium)
(v) Office Furniture A/c Dr. 60,000
Input CGST A/c Dr. 5,400
Input SGST A/c Dr. 5,400
To Bank A/c 70,800
(Purchased office furniture)
(vi) Output IGST A/c Dr. 27,000
To Input IGST A/c 27,000
(Input Tax credit up to Rs.27,000 availed and
balance to be adjusted against Output CGST)
(vii) Output CGST A/c Dr. 22,500
To Input CGST A/c 7,200
To Input IGST A/c 9,000
To Bank A/c 6,300
(Input tax credit availed and balance paid)
(viii) Output SGST A/c Dr. 22,500
To Input SGST A/c 7,200
To Bank A/c 15,300
(Input tax credit availed and balance paid)
Total 8,74,400 8,74,400
Working Note: GST Common Set Off Procedure:
Output
IGST
(Rs.)
Output
CGST
(Rs.)
Output SGST
(Rs.)
27000 22500 22500
Input IGST –27,000
(36000-
9000)
–9000 –
Input CGST – –7,200
(1800 + 5400)
–
Input SGST – – –7,200
(1800 + 5400)
Payable Nil 6,300 15,300
Question 7:
Pass entries in the books of Sh. Jagdish Mishra of Lucknow (U.P.) assuming CGST @ 6%
and SGST @ 6%:
2018
March 5 Purchased goods for Rs.2,50,000 from Virender Yadav of Patna
(Bihar).
March
12
Sold goods costing Rs.60,000 at 50% profit to Partap Sinha of
Ranchi (Jharkhand).
March
14
Purchased goods for Rs.70,000 from Ram Nath of Kanpur (U.P.)
against cheque.
March
18
Sold goods at Varanasi (U.P.) Costing Rs.2,25,000
at 3313%3313% profit less trade discount 10% against cheque
which was deposited into bank.
March
20 Paid rent Rs.25,000 by cheque.
March
31
Payment made of balance amount of GST.
ANSWER:
Journal
Date Particulars L.F. Debit Credit
Amount
(Rs.)
Amount
(Rs.)
Mar 05 Purchases A/c Dr. 2,50,000
Input IGST A/c 30,000 .
To Virender Yadav A/c 2,80,000
(Purchased goods on credit)
Mar 12 Partap Sinha A/c Dr. 1,00,800
To Sales A/c 90,000
To Output IGST A/c 10,800
(Sold goods on credit)
Mar 14 Purchases A/c Dr. 70,000
Input CGST A/c Dr. 4,200
Input SGST A/c Dr. 4,200
To Bank A/c 78,400
(Purchased goods against cheque)
Mar 18 Bank A/c Dr. 3,02,400
To Sales A/c 2,70,000
To Output CGST A/c 16,200
To Output SGST A/c 16,200
(Sold goods against cheque)
Mar 20 Rent A/c Dr. 25,000
Input CGST A/c Dr. 1,500
Input SGST A/c Dr. 1,500
To Bank A/c 28,000
(Paid rent by cheque)
Mar 31 Output IGST A/c Dr. 10,800
To Input IGST A/c 10,800
(Input tax credit availed)
Mar 31 Output CGST A/c Dr. 16,200
To Input CGST A/c 5,700
To Input IGST A/c 10,500
(Input tax credit availed)
Mar 31 Output SGST A/c Dr. 16,200
To Input SGST A/c 5,700
To Input IGST A/c 8,700
To Bank A/c 1,800
8,32,800 8,32,800
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
MAY 27,2020
Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING
Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
Question 8:
Pass entries in the books of Krishnan of Bengaluru (Karnataka) in the following cases:
I Purchased goods from Karunakaran of Chennai for Rs.1,00,000.
(IGST @18%)
II Sold goods to Ganeshan of Bengaluru for Rs.1,50,000.
(CGST @ 6% and SGST @ 6%)
III Sold goods to S. Nair of Kerala for Rs.2,60,000.
(IGST @18%)
IV Purchased a Machinery for Rs.80,000 from Surya Ltd. against cheque.
(CGST @ 9% and SGST @ 9%)
V Paid rent Rs.30,000 by cheque.
(CGST @ 6% and SGST @ 6%)
VI Purchased goods from Ram Mohan Rai of Bengaluru for Rs.2,00,000.
(CGST @ 6% and SGST @ 6%)
VII Paid insurance premium Rs.10,000 by cheque.
(CGST @ 9% and SGST @ 9%)
VIII Received commission Rs.20,000 by cheque which is deposited into bank.
(CGST @ 9% and SGST @ 9%)
IX Payment made of balance amount of GST.
ANSWER:
Journal
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
Purchases A/c Dr. 1,00,000
Input IGST A/c 18,000
To Karunakaran A/c 1,18,000
(Purchased goods on credit)
Ganeshan A/c Dr. 1,68,000
To Sales A/c 1,50,000
To Output CGST A/c 9,000
To Output SGST A/c 9,000
(Sold goods on credit)
S. Nair A/c Dr. 3,06,800
To Sales A/c Dr. 2,60,000
To Output IGST A/c 46,800
(Sold goods on credit)
Machinery A/c Dr. 80,000
Input CGST A/c 7,200
Input SGST A/c 7,200
To Bank A/c 94,400
(Purchased Motor bike against cheque)
Rent A/c Dr. 30,000
Input CGST A/c Dr. 1,800
Input SGST A/c Dr. 1,800
To Bank A/c 33,600
(Paid rent by cheque)
Purchases A/c Dr. 2,00,000
Input CGST A/c 12,000
Input SGST A/c 12,000
To Ram Mohan Rai A/c 2,24,000
(Purchased goods on credit)
Insurance Premium A/c Dr. 10,000
Input CGST A/c Dr. 900
Input SGST A/c Dr. 900
To Bank A/c 11,800
(Paid insurance premium by cheque)
Bank A/c Dr. 23,600
To Commission A/c 20,000
To Output CGST A/c 1,800
To Output SGST A/c 1,800
(Received commission and deposited in bank)
Output IGST A/c Dr. 18,000
To Input IGST A/c 18,000
(Input tax credit availed)
Output CGST A/c Dr. 10,800
Output SGST A/c Dr. 10,800
To Input CGST A/c 10,800
To Input IGST A/c 10,800
(Input tax credit availed)
Output IGST A/c Dr. 28,800
To Input SGST A/c 11,100
To Input IGST A/c 11,100
To Bank A/c 6,600
10,48,600 10,48,600
Question 9:
Pass entries in the books of all parties in the following cases assuming CGST @ 6% and
SGST @ 6%:
2018
March 1 Mahesh Chandra of Bihar purchased goods for Rs.1,00,000 from
Sunil Soren of Jharkhand and sold the same to Deepak Patnaik of
Odisha for Rs.1,50,000.
March 5 Deepak Patnaik sold goods to Suresh Yadav of Odisha for
Rs.1,80,000.
March
10
Suresh Yadav sold goods to Ravi Chakravarti of West Bengal for
Rs.2,50,000.
March
14
Ravi Chakravarti sold goods costing Rs.2,50,000 to Sanjay
Diwedi of West Bengal at a profit of 40% on cost.
ANSWER:
(a)
Journal of Mahesh Chand, Bihar
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2018
Mar 01 Purchases A/c Dr. 1,00,000
Input IGST A/c 12,000
To Sunil Soren 1,12,000
(Purchased goods plus 12% IGST)
Mar 01 Deepak Patnaik Dr. 1,68,000
To Sales A/c 1,50,000
To Output IGST A/c 18,000
(Sold goods plus 12% IGST)
Total 2,80,000 2,80,000
(b)
Journal of Sunil Soren, Jharkhand
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2018
Mar 01 Mahesh Chand Dr. 1,12,000
To Sales A/c 1,00,000
To Output IGST A/c 12,000
(Sold goods plus 12% IGST)
Total 1,12,000 1,12,000
(c)
Journal of Deepak Patnaik, Odisha
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2018
Mar 01 Purchases A/c Dr. 1,50,000
Input IGST A/c 18,000
To Mahesh Chand 1,68,000
(Purchased goods plus 12% IGST)
Mar 05 Suresh Yadav Dr. 2,01,600
To Sales A/c 1,80,000
To Output CGST A/c 10,800
To Output SGST A/c 10,800
(Sold goods plus 6% CGST and SGST each)
Total 3,69,600 3,69,600
(d)
Journal of Suresh Yadav, Odisha
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2018
Mar 05 Purchases A/c Dr. 1,80,000
Input CGST A/c 10,800
Input SGST A/c 10,800
To Deepak Patnaik 2,01,600
(Purchased goods plus 12% IGST)
Mar 10 Ravi Chakravarti Dr. 2,80,000
To Sales A/c 2,50,000
To Output IGST A/c 30,000
(Sold goods plus 12% IGST)
Total 4,81,600 4,81,600
(e)
Journal of Ravi Chakravarti, West Bengal
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2018
Mar 10 Purchases A/c Dr. 2,50,000
Input IGST A/c 30,000
To Suresh Yadav 2,80,000
(Purchased goods plus 12% IGST)
Mar 14 Sanjay Diwedi Dr. 3,92,000
To Sales A/c 3,50,000
To Output CGST A/c 21,000
To Output SGST A/c 21,000
(Sold goods costing ₹. 2,50,000 at 40%
Profit plus 6% CGST and SGST each)
Total 6,72,000 6,72,000
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING
Chapter 10 :-ACCOUNTING FOR GOODS AND SERVICE TAX (GST)
PRACTICE WORKSHEET -- 1
Short Answer Question
Question 1
What is GST?
Answer: Goods and services tax (GST) is a tax imposed indirectly on the goods and services supply.
Question 2
Name the two central taxes that have merged into GST.
Answer: The two central taxes that have merged into GST are excise duty and customs duty.
Question 3
Name the two-state taxes that have merged into GST.
Answer: The two-state taxes that have merged into GST are purchase tax and VAT.
Question 4
Give two advantages of GST.
Answer: The two advantages of GST are a) decreases the cost of goods and b) reduces tax invasion.
Question 5
What is the full form of CGST?
Answer: The full form of CGST is Central Goods and Services Tax.
Question 6
What is the full form of SGST?
Answer: The full form of SGST is State Goods and Services Tax.
Question 7
What is the full form of IGST?
Answer: The full form of IGST is Integrated Goods and Services Tax.
Question 8
What is CGST?
Answer: CGST is a tax imposed on supplies of goods and services within the state-imposed by the central government and administered by the CGST Act.
Question 9
What is IGST?
Answer: IGST is a tax imposed on all Inter-state supplies of both import and export of goods and services and is supervised by the IGST Act.
---------------------------------------------------------------------------------
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11—Books of Original Entry-Cash Book
LEARNING OUTCOMES After studying this chapter, you should be able to understand:-
*Special purpose subsidiary books and their advantages
*Meaning of Cash Book
*Distinction between Cash Account and Cash Book
*Types of Cash Book-
--- Single Column Cash Book
---Double Column Cash Book
--- Petty Cash Book
*Recording of entries in Cash Book
REFERENCES -1.N.C.E.R.T
2.Extramarks
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
MAY 28,2020
Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
Meaning of Cash Book- The cash book is used to record receipts and payments of cash. It
works as a book of original entry as well as a ledger account. The entries related to receipt and
payment of cash are first recorded in the cash book and then posted to the relevant ledger
accounts. Moreover, a cash book is a substitute for cash account in the ledger. A company that
properly maintains a cash book does not need to open a cash account in its ledger.
The book in which all cash transactions (either cash is received or paid) are primarily
recorded according to dates, is called 'Cash Book'.
Features:
A Cash Book has the following features:
1. It plays a dual role. It is both a book of original entry as well as a book of final
entry. All cash transactions are primarily recorded in it as soon as they take place;
so it is a journal (a book of original entry). On the other hand, the cash aspect of all
cash transactions is finally recorded in the Cash Book (no posting in Ledger); so a
Cash Book is also a Ledger (a book of final entry).
2. Only one aspect of cash transaction is posted to the ledger account. The other aspect
( i.e. cash aspect) needs no posting in Cash A/c. Since the Cash Book is the
substitute for Cash A/c, no Cash A/c is opened in the ledger.
3. It has two identical sides-left hand side, the debit side and right hand side, the credit
side.
4. All the items of cash receipts are recorded on the left hand side and all items of cash
payments on the right hand side in order of date.
5. The difference between the total of two sides shows cash in hand.
6. Its balance is verified by counting actual cash in the cash box.
7. It always shows debit balance. It can never show credit balance.
Advantages:
Generally cash transactions are numerous. What is credit transaction today, will be cash
transactions tomorrow. In other words, all credit transactions are finally settled by cash. If
like all other transactions cash transactions are also recorded primarily in Journal, the cash
aspect of the transactions will be required to be posted to Cash A/C, in the Ledger
separately. This involves much time and labour. This is why, cash transactions are recorded
in a separate book named Cash Book. It saves much time and labour. Besides this the Cash Book renders the following benefits:
1. Daily cash receipts and cash payments are easily ascertained.
2. Cash in hand at any time can easily be ascertained through Cash Book balance.
3. Any mistake in the book can be easily detected at the time of verification of cash.
4. Any defalcation of money can be detected while verifying cash. 5. Since cash is verified daily, Cash Book is always kept up-to-date.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
Is Cash Book a Journal or a Ledger?
From the above discussion it appears that the Cash Book is the substitute for the Cash
Account. In fact, no separate Cash Account is opened in the Ledger, Cash Book serves the
purpose of the Cash Account. The entries in Cash Book are regarded as one aspect of the
Double Entry System - the other aspect is posted to the Ledger in the concerned account.
L.C. Cropper remarked "Every entry in the Cash Book makes one half of a double entry; the
other half of the double entry appears on the opposite side of some account in the Ledger. "From this angle, 'Cash Book is a Ledger'.
On the other hand, all cash transactions are primarily recorded in the Cash Book in order of
date and thereafter posted to the concerned ledger accounts. Judging from this angle, 'Cash
Book is a Journal'. Thus we see that a Cash Book is the 'mixture of Journal and Ledger'.
According to Spicer & Pegler, "the Cash Book is actually a ledger account, but owing to the
large number of entries made therein, it is kept in a separate book, called a Cash Book,
which is used also as a book of prime entry."
Specimen/format of Simple Cash Book:
Date Particular V. No. L. F. Amount$ Date Particulars V. No. L. F. Amount$
The Columns of the Cash Book are Explained Below:
1. Date:
The date of transaction is written in this column in two lines—in the first line, the year and
in the second line, the name of the month followed by the actual date.
2. Particulars:
In this column the name of the opposite account is written (the second aspect of cash
transaction). Below this is written the narration of the transaction.
3. L.F. (Ledger Folio):
The page number of the Ledger where the concerned (opposite ) account has been opened,
is written in this column. This will help to locate the account from the Ledger. It may be
noted that in a Ledger account J.F. is written as reference, while in a Cash Book L.F. is written. It is so, because cash transactions are not recorded in any Journal.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
4. Amount:
The amount of the transaction is recorded in this column. The amount of cash received is
recorded on the debit side in amount column and the amount of cash paid is recorded on the credit side in amount column.
5. V. NO. (Voucher Number):
The voucher number of each item of receipt and payment is also written. A voucher is
necessary for each item of receipt and payment. Generally, a voucher has a serial number
and this number-is written in this column (V. No).
When cash is received from a debtor or customer, generally a receipt or 'cash memo' is
issued to the debtor which is called Receipt Voucher. Again, when money is paid to a
creditor or supplier a receipt is obtained from him which is called 'Payment Voucher, Cash
transactions are recorded in the Cash Book on the basis of Receipt Voucher and Payment
Voucher.
Thus, a document evidencing cash receipts and payments and forming the basis for making
entries in the Cash Book is called Cash Voucher.
Distinction Between a Cash Book and a Cash Account:
In fact, Cash Book is a substitute for a Cash Account. Yet there are some differences
between the two, which are given below:
Cash Book Cash Account
1. It is a separate book in which cash
transactions are directly recorded.
1. It is an account in a Ledger in which
posting is made from journal.
2. It serves the purpose of both journal and
ledger and hence cash transactions need
not be primarily recorded in Journal.
2. It serves the purpose of a Ledger only.
If Cash A/C is opened in the Ledger, all
cash transactions are first recorded in
journal.
3. Narration is required. 3. Narration is not required.
4. A column for Ledger Folio is provided. 4. A column for Journal Folio is provided.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
MAY 29,2020
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extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
Types of cash book There are four major types of cash book that companies usually maintain to account for their cash
flows. These are given below:
1.A single column cash book to record only cash transactions.
2.A double/two column cash book to record cash as well as bank transactions.
3.A triple/three column cash book to record cash, bank and purchase discount and sales discount.
4.A petty cash book to record small day to day cash expenditures.
Question 1:
Enter the following transactions in a Single Column Cash Book∶−
2016 (Rs.)
May 1 Commenced business with Cash 25,000
3 Bought goods for Cash 10,000 3 Paid Carriage 200 4 Sold goods for Cash 6,000
10 Received from Ram 1,000 12 Paid to Shiv Kumar 2,600 15 Cash Sales 8,400 18 Purchased furniture for cash for office 5,000 20 Paid for Advertisement 500 20 Purchased goods from Mahesh on credit 6,000 24 Paid to Mahesh 4,000 25 Paid Wages 400 27 Received for Commission 1,500 28 Withdrew for personal use 2,200 31 Paid salary 700
ANSWER:
Cash Book
Dr. Cr.
Date Particulars L.F. Cash (Rs) Date Particulars L.F. Cash (Rs)
2016 2016
May
01
Capital A/c 25,000 May 03
Purchases A/c 10,000
May Sales A/c 6,000 May 03 Carriage A/c 200
04
May
10 Ram
1,000 May 12
Shiv Kumar 2,600
May
15 Sales A/c
8,400 May 18
Furniture A/c 5,000
May
27 Commission A/c
1,500 May 20
Advertisement A/c 500
May 24 Mahesh 4,000
May 25 Wages A/c 400
May 28 Drawings A/c 2,200
May 31 Salary A/c 700
May 31 Balance c/d 16,300
41,900 41,900
June
01 Balance b/d
16,300
Note: Transaction dated May 20, 2016, will not be recorded in Cash Book
because credit transactions do not affect the cash balance.
Question 2:
Enter the following transactions in M/s Mukerjee & Bros. Single Column Cash Book:
2017 (Rs.)
April 1 Balance of Cash in hand 50,000
3 Purchased goods for cash 22,000
7 Purchased goods 15,000
10 Purchased goods from Gopi 30,000
13 Purchased goods from Gopi for cash 10,000
15 Sold goods 20,000
18 Sold goods to Vishwakarma 45,000
20 Sold goods to Raghunandan for cash 18,000
25 Received commission 5,000
30 Paid Rent 10,000
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
MAY 30,2020
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extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
ANSWER:
Cash Book Dr. Cr.
Date Particulars L.F. Cash (Rs)
Date Particulars L.F. Cash (Rs)
2017
2017
April
01 Balance b/d 50,000 April
03 Purchases
A/c
22,000
April
15 Sales A/c
20,000 April
07
Purchases
A/c
15,000
April
20 Sales A/c
18,000 April
13 Purchases
A/c
10,000
April
25 Commission A/c
5,000 April
30
Rent A/c 10,000
April
30
Balance c/d 36,000
93,000 93,000
May
01 Balance b/d
36,000
Question 3:
Enter the following transactions in a Single Column Cash Book∶
2017 (Rs.)
Feb. 1 Mr. Vipin commenced business with Cash 2,00,000
3 Opened a Bank Account and deposited 75,000
5 Purchased goods for Cash 30,000
7 Purchased goods 15,000
10 Purchased goods from Surya Kant 40,000
12 Paid to Surya Kant 38,800
Discount received 1,200
15 Paid Wages in Cash 22,500
16 Paid to casual labour 1,500
20 Sold goods to Dev Raj for Cash 80,000
25 Paid electricity bill in Cash 12,000
26 Withdrew Cash from Bank 40,000
27 Received for Cash sales 5,000
27 Paid for miscellaneous expenses 500
ANSWER:
Cash Book Dr. Cr.
Date Particulars L.F. Cash (Rs)
Date Particulars L.F. Cash (Rs)
2017
2017
Feb.01 Capital A/c 2,00,000 Feb.03 Bank A/c 75,000 Feb.20 Sales A/c 80,000 Feb.05 Purchases A/c 30,000
Feb.26 Bank A/c 40,000 Feb.07 Purchases A/c 15,000 Feb.27 Sales A/c 5,000 Feb.12 Surya Kant 38,800
Feb.15 Wages A/c 22,500 Feb.16 Wages A/c 1,500
Feb.25 Electricity Charges
A/c
12,000
Feb.27 Miscellaneous
Expenses A/c
500
Feb.28 Balance c/d 1,29,700
3,25,000 3,25,000
Mar.01 Balance b/d 1,29,700
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 01,2020
Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
Question 4:
Enter the following transactions in a Single Column Cash Book:-
2016 Rs.
Dec. 1 Cash-in-hand 25,000
2 Cash Sales (CGST 6%, SGST 6%) 40,000
4 Received from X on behalf of Y 4,000
9 Paid to Som Pal 4,900
Discount Received 100
12 Received from Vijay Kumar 7,800
and discount allowed 200
20 Bought goods for Cash (CGST 6%, SGST 6%) 20,000
21 Paid Cartage (CGST 6%, SGST 6%) 1,000
23 Remitted to Dharamvir 1,880
and discount allowed by him 120
25 Received M.O. from Mohan 500
27 Borrowed from Mahabir 7,500
29 Received from Bhushan 3,900
discount allowed 100
31 Paid to Lalit Rs.2,700 in full settlement of his account of Rs.3,000
ANSWER: Cash Book
Dr. Cr.
Date Particulars L.F. Cash (Rs.) Date Particulars L.F. Cash (Rs.)
2016 2016
Dec. 01 Balance
b/d
25,000 Dec. 09
Som Pal 4,900
Dec. 02 Sales A/c 40,000 Dec. 20 Purchases A/c 20,000
Dec. 02 Output
CGST A/c
2,400 Dec. 20
Input CGST A/c 1,200
Dec. 02 Output
SGST A/c
2,400 Dec. 20
Input SGST A/c 1,200
Dec. 04 Y 4,000 Dec.21 Cartage 1,000
Dec. 12 Vijay
Kumar
7,800 Dec. 21
Input CGST A/c 60
Dec. 25 Mohan 500 Dec. 21 Input SGST A/c 60
Dec. 27 Mahabir’s
Loan A/c
7,500 Dec. 23
Dharamvir 1,880
Dec. 29 Bhushan 3,900 Dec. 31 Lalit 2,700
Dec. 31 Balance c/d 60,500
93,,500 93,500
2017
Jan.01 Balance
b/d
60,500
Question 5:Enter the following transactions in a Single Column Cash Book of M/s Suchitra Sen & Co. :
2017 (Rs.)
March 1 Cash in Hand 1,20,000
2 Bought machinery for Rs.60,000 and paid carriage 2,000
4 Bought goods for Rs.25,000 and paid carriage 1,000
5 Bought goods from Ravi Das 15,000
6 Cash received from sale of Motor bike 5,000
8 Sold goods for cash less 5% cash discount 20,000
10 Sold goods 40,000
12 Paid to Ravi Das on account 10,000
15 Bought goods from Suresh for cash less 4% cash discount 30,000
20 Paid to Ravi Das 4,500
Discount received 500
25 Cash collected from Ashok (Debtor) 10,000
28 Purchased postal stamps 500
28 Salary paid to accountant 15,000
ANSWER:
Cash Book Dr. Cr.
Date Particulars L.F. Cash (Rs)
Date Particulars L.F. Cash (Rs)
2017
2017
Mar.01 Balance b/d 1,20,000 Mar.02 Machinery A/c
(60,000 + 2,000)
62,000
Mar.06 Motor Bike A/c 5,000 Mar.04 Purchases A/c 25,000 Mar.08 Sales A/c 19,000 Mar.04 Carriage A/c 1,000 Mar.10 Sales A/c 40,000 Mar.12 Ravi Das 10,000
Mar.25 Ashok 10,000 Mar.15 Suresh 28,800 Mar.20 Ravi Das 4,500 Mar.28 Postal Stamps 500 Mar.28 Salary A/c 15,000 Mar.31 Balance c/d 47,200
1,94,000 1,94,000
Apr.01 Balance b/d 47,200
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 02,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
CONTRA ENTRY--
Contra entry refers to transactions involving cash and bank account. In other words, any entry which
affects both cash and bank accounts is called a contra entry. Contra in Latin means the opposite. It is more
popularly known as contra voucher.
To make the definition further simpler, any transactions involving a transfer of cash between one cash a/c
to another or one cash a/c to another bank a/c or one bank account to another is called as a contra entry.
To record contra entries, traditionally a cash book with cash and bank columns is prepared where both the
aspects of the transaction will be entered in the same book which is Contra Book.
In the debit side of the contra book, ‘To Cash A/c’ will be entered under the particulars column and the
amount will be entered in the bank column.
In the credit side of the contra book ‘By Bank A/c’ will be entered under the particulars column and the
amount will be entered in the cash column.
And all such contra entries are denoted by writing the letter ‘C’ in the L.F. column, on both sides of the
cash book. They represent that no posting in respect this is necessary in the ledger.
With automation of accounting using accounting software, these transactions are auto-posted into the
relevant ledger and there is less relevance of cash book format discussed above.
Question 6:
Write up Cash Book of Bhanu Partap with Cash and Bank Columns from the following
transactions:−
2017 (Rs.)
March 1 Cash-in-hand 2,710
Cash at Bank 27,500
3 Received from Subhash 3,500
4 Sold goods for cash 10,000
7 Paid Rent by Cheque 800
8 Paid Sohan by cheque 3,000
10 Bought goods for cash 15,000
12 Paid cash for stationery 200
Drew from Bank for office use 8,000
15 Received cheque from Surendra and sent it to Bank 6,600
16 Paid for advertisement 750
18 Issued cheque in favour of Nath Brothers 4,300
19 Cash Sales 13,000
Paid into Bank 16,000
20 Received cheque from Vinod and sent it to Bank 2,400
22 Bought Scooter and paid for the same by cheque 18,000
25 Bank returned Surendra's cheque dishonoured
28 Paid salary by cheque 7,200
Paid Trade expenses 2,000
29 Cash sales 9,500
30 Paid into Bank 10,000
ANSWER:
Cash Book
Dr. Cr.
Date Particulars L.F. Cash (Rs) Bank (Rs) Date Particulars L.F. Cash (Rs) Bank (Rs)
2017 2017
Mar. 01 Balance
b/d
2,710 27,500 Mar. 07
Rent A/c 800
Mar. 03 Subhash 3,500 Mar. 08 Sohan 3,000
Mar. 04 Sales A/c 10,000 Mar. 10 Purchases A/c 15,000
Mar. 12 Bank A/c C 8,000 Mar. 12 Stationery A/c 200
Mar. 15 Surendra 6,600 Mar. 12 Cash A/c C 8,000
Mar. 19 Sales A/c 13,000
Mar. 16 Advertisement
A/c
750
Mar. 19 Cash A/c C 16,000 Mar. 18 Nath Brothers 4,300
Mar. 20 Vinod 2,400 Mar. 19 Bank A/c C 16,000
Mar. 29 Sales A/c 9,500 Mar. 22 Vehicle A/c 18,000
Mar. 30 Cash A/c C 10,000 Mar. 26 Surendra 6,600
Mar. 28 Salary A/c 7,200
Mar. 28 Trade
Expenses A/c
2,000
Mar. 30 Bank A/c C 10,000
Mar. 31 Balance c/d 2,760 14,600
46,710 62,500 46,710 62,500
Apr. 01 Balance
b/d
2,760 14,600
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 03,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
Question 7-
Enter the following transactions in two Column cash book and find out the cash and bank
balance∶
2017
(Rs.)
Jan. 1 Started business with cash 20,000
Jan. 2 Opened a current account with the S.B.I. 8,000
Jan. 3 Bought goods by cheque 150
Jan. 4 Received cheque from Ram 200
Jan. 5 Sold goods for cash 40
Jan. 7 Paid into bank:
(i) Cash Rs.30
(ii) Cheque Rs.200 230
Jan. 8 Paid Shyam by cheque 345
Jan. 8 Paid carriage by cheque 180
Jan. 10 Drew cash from bank for office use 200
Jan. 30 Paid wages by cheque 60
ANSWER:
Cash Book
Dr. Cr.
Date Particulars L.F. Cash (Rs) Bank (Rs) Date Particulars L.F. Cash (Rs) Bank (Rs)
2017 2017
Jan. 01 Capital A/c 20,000
Jan.
02 Bank A/c
C 8,000
Jan. 02 Cash A/c C
8,000 Jan.
03 Purchases A/c
150
Jan. 05 Sales A/c 40
Jan.
07 Bank A/c
C 30
Jan. 07 Cheques-in-
Hand A/c
200
Jan.
08 Shyam
345
Jan. 07 Cash A/c C
30 Jan.
08 Carriage A/c
180
Jan. 10 Bank A/c C 200
Jan.
10 Cash A/c
C 200
Jan.
30 Wages A/c
60
Jan.
31 Balance c/d
12,210 7,295
20,240 8,230 20,240 8,230
Feb.01 Balance b/d 12,210 7,295
Working Note: Journal Proper
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017
Jan. 04 Cheques-in-Hand A/c Dr. 200
To Ram 200
(Cheque received from Ram)
PETTY CASH BOOK-
Besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business.
Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, and causal labor etc. These small expenditures are usually paid using coins and currency notes rather than checks. The person responsible for spending petty cash and recording it in a petty cash book is known as petty cashier.
The chief cashier (also known as head or main cashier) bears the heavy responsibility of maintaining company’s general cash book in which receipts and payments amounting to hundreds or even thousands of dollars are recorded by him every day. He, therefore, usually delegates the responsibility for handling small day to day cash transactions to a bookkeeper, receptionist or some other reliable staff member. Like a general cash book, a petty cash book has a debit and a credit side. All receipts are recorded on the debit side and all payments are recorded on the credit side of petty cash book by the petty cashier.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 04,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
Petty cash systems
The cash allocated for petty expenditures for a specific period is entered on the credit side of general cash book and on the debit side of petty cash book.
The cash is given to the petty cashier either on ordinary system or imprest system which are briefly explained below:
1. Ordinary system
Under ordinary system, a lump sum amount of cash is given to the petty cashier. When the whole amount is spent, the petty cashier submits the details of petty expenditures recorded in the petty cash book to the head or chief cashier for review.
2. Imprest system
Under imprest system, a fixed amount of money known as float is given to the petty cashier to meet petty expenditures for an agreed period which usually consists of a week or month. At the end of agreed period, the petty cashier submits the details of all expenditures incurred by him to the chief cashier. The total cash spent by the petty cashier during the period is reimbursed to him and the total cash available to spend at the start of the next period becomes equal to the original sum (i.e., float). At any time, the total of petty cash balance and all expenditures that have not been reimbursed to the petty cashier is equal to the agreed float.
Advantages of imprest system:The imprest system of petty cash is used by most of the companies because of the following advantages:
The imprest system reduces the chances of misuse of cash because the float can be immediately reduced if it is found to be more than adequate for the agreed period.
Under this system, the chief cashier periodically checks the record of petty cash. If an error is committed by petty cashier, it can be detected and rectified soon.
It saves the time of the firm’s chief cashier who is usually a busy person with heavy responsibilities of handling large receipts and payments by cash and checks.
The imprest system enables significant saving to be effected to post small items to accounts in the ledger since it uses an analysis system that collects small items together into weekly or monthly totals.
This system trains young staff members in handling cash with responsibility.*
There are little to no chance of misappropriation of cash by the person in charge because the imprested sum is usually very small.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 05,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
Format of petty cash book
A simple format of petty cash book is given below:
Example
The petty cashier of John and James Company paid cash for the following expenditures during March 2018.
March 01: Balance brought forward; petty cash $50.
March 01: The amount of petty expenditures for previous moth reimbursed by chief cashier $200.
March 05: Bought some liquid material for cleaning purpose $25.
March 10: Paid $20 for van wash.
March 13: Bought pens and pencils $15.
March 17: Paid for fuel $35.
March 20: Paid $55 for casual labor.
March 22: Donated $10 to SBA – a charitable institution.
March 30: Bought a broom for office $5
Required: Record the above transactions in a petty cash book assuming a petty cash imprest system is used by the John and James company.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 06,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book Question-8
Record the following transactions in a Petty Cash Book drawn with suitable columns and
then balance the same:
2017 (Rs.)
Jan. 1 Petty cashier is given a monthly imprest amount of Rs.10,000. He
spent last month Rs.9,200 and got the balance from the head cashier
today.
Jan. 2 Paid for Wages 600
Jan. 3 Paid for sundry expenses 100
Jan. 5 Paid for stationery 700
Jan. 9 Paid for courier charges 200
Jan. 12 Stamps purchased 750
Jan. 14 Paid wages to casual labour 500
Jan. 16 Stationery purchased 400
Jan. 19 Paid for general expenses 610
Jan. 20 Paid for cartage 800
Jan. 22 Paid for advertising 900
Jan. 24 Paid for postage 400
Jan. 25 Paid for Taxi Fare 840
Jan. 27 Paid for entertainment 600
Jan. 29 Paid for carriage 500
Jan. 31 Paid for petty repairs 700
ANSWER:
Amount
Received (Rs)
C.B.
Folio Date
V.
No. Particulars
Total
Amount
(Rs)
Conveyanc
e
Printing &
Stationery
Postag
e Wages Cartage
Miscellaneous
Expenses
2017
800 Jan.
01
Balance b/d
9,200 Jan.
01
Cash A/c
Jan.
02
Wages A/c 600 600
Jan.
03
Sundry
Expenses
A/c
100 100
Jan. Stationery 700 700
05 A/c
Jan.
09
Courier
charges A/c
200 200
Jan.
12
Stamps A/c 750 750
Jan.
14
Wages A/c 500 500
Jan.
16
Stationery
A/c
400 400
Jan.
19
General
Expenses
A/c
610 610
Jan.
20
Cartage A/c 800 800
Jan.
22
Advt. A/c 900 900
Jan.
24
Postage A/c 400 400
Jan.
25
Taxi Fare
A/c
840 840
Jan.
27
Entertainm
ent A/c
600 600
Jan.
29
Carriage
A/c
500 500
Jan.
31
Repair A/c 700 700
8,600 840 1,100 1,350 1,100 1,300 2,910
Jan.
31
Balance c/d 1,400
10,000 10,000
1,400 Feb.
01
Balance b/d
8,600 Feb.
01
Cash A/c
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 07,2020
SUNDAY
HOLIDAY * REVISE THE FOLLOWING TOPICS-
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
PRACTICE WORKSHEET-2 Q.1.What is a Cash Book?
Q.2.Is cash book a journal or a Ledger ?
Q.3.What are special Purpose subsidiary Books?
Q.4.Define Bank Overdraft.
Q.5.What are contra entries ?
Q.6.What is a Petty Cash Book ?
Q.7.Why a Cash Book always shows a debit balance ?
Q.8.Give one advantages of maintaining a Cash Book.
Q.9.Why Cash Book is called a book of Original entry ?
Q.10.Write one difference between Cash Account and Cash Book .
------------------------------------------------------------
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 08,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
PRACTICE WORKSHEET-3 Q.1. Enter the following particulars in the Cash Book with Cash and Bank columns:−
2016
April 1 Balance of cash in hand Rs.2,000 and at Bank Rs.12,000.
3 Received cash from Madhav Rs.1,800.
5 Cash Sales Rs.1,000
6 Purchases by cheque Rs.745.
9 Paid into Bank Rs.1,850.
10 Paid cash for freight Rs.54.
12 Drew from Bank for office use Rs.600.
13 Issued a cheque in favour of M/s Arun & Sons for Rs.985.
16 Paid into Bank Rs.715.
17 Drew Cash for his son’s birthday party Rs.175.
19 Received a cheque from Navin for Rs.380 and deposited it into bank on the same day.
20 Cash Sales Rs.200.
25 Drew from Bank for office use Rs.200.
26 Purchased furniture for Rs.1,000 and payment made by cheque.
27 Navin’s cheque dishonoured, Bank charges Rs.5.
29 Purchased business premises, payment made by cheque Rs.12,000.
30 Received cheque for Rs.675 from Harish.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book Q.2.Enter the following transactions in a Two Column Cash Book :−
(i) Commenced business with cash Rs.50,000
(ii) Deposited in Bank 40,000
(iii) Received cash from Mohan Rs.950 in full settlement of a debt of Rs.1,000
(iv) Bought goods for cash Rs.10,000
(v) Bought goods by cheque Rs.15,000
(vi) Sold goods for a cheque for Rs.20,000 and deposited in Bank on the same day
(vii) Paid to Arun by cheque Rs.1,900 in full settlement of his account of Rs.2,000
(viii) Drew from Bank for office use Rs.1,000.
Q.3. Write the following transactions in a Two Column Cash Book and balance the Cash Book:−
2013 (Rs.)
Jan. 1 Cash in hand 6,000
Bank Balance (Cr) 3,000
3 Deposited into Bank 2,000
5 Received from Mohan 400
Discount allowed 10
7 Received a cheque from Hari and sent it to the bank 600
9 Received a cheque from Prem Mohan 1,600
Discount allowed 25
12 Withdrew from bank for office use 300
13 Bought goods for cash 600
14 Sold goods for cash 1,200
16 Paid to Ganesh by cheque 494
Discount received 6
18 Prem Mohan’s cheque deposited in the bank
20 Sold goods to Gopal for Rs.1,500 for which he gave cash Rs.800 and a cheque of Rs.700.
22 Deposited into bank (including Gopal’s cheque) 900
24 Paid rent by cheque 150
25 Withdrew from bank for personal use 200
28 Bank notifies that Prem Mohan’s cheque was dishonoured
30 Received from Anil Rs.270 in cash and Rs.540 by cheque.
Discount Allowed Rs.90.
The cheque was deposited into bank.
31 Bank charges as shown in Pass Book 5
Paid Salary 500
Q.4. Enter the following transactions in the Two Column Cash Book of Mr. Mohan:-
2018 Rs.
Jan.
1
Cash in Hand 2,200
Cash at Bank 50,000
3 Purchased goods for Rs.75,000; Trade Discount 20%; CGST 6%, SGST 6%; Payment
made by Cheque
4 Sold goods for Rs.40,000; Trade Discount 15%; IGST 12%; Payment received by Cheque
5 Received a cheque from Naresh 1,000
8 Cheque received from Naresh endorsed to Suresh in full settlement of his account of
Rs.1,050
10 Paid Life Insurance premium of Mr. Mohan 100
13 Received a cheque from Pawan in full settlement of his account of Rs.750. 700
16 Pawan’s cheque returned dishonoured by bank –
20 Deposited into Bank, balance of Cash in excess of Rs.250
Q.5. Enter the following transactions in a Two Column Cash Book:-
2016 Rs.
Dec.
1
Started business with cash 50,000
2 Pays into Bank 29,000
3 Received cheque from Raja & Co. 800
Discount allowed 20
5 Withdrew cash from bank for private use 240
10 Purchased goods for Rs.1,00,000; IGST 18%; Payment made by Cheque
12 Sold goods for Rs.1,50,000; Trade Discount 20%; IGST 18%; Payment received by
Cheque
14 Received cheque from Kamla 395
Discount allowed 15
16 Kamla’s cheque endorsed to Bala in full settlement of her account of Rs.425
29 Paid rent by cheque 1,000
30 Deposited into bank, balance of cash in excess of 450
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 09,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book Q.6. Enter the following transactions in the Cash Book with Cash and Bank Columns∶−
2016
June
1
Balance of Cash in Hand Rs.12,000; Overdraft at Bank Rs.1,500.
2 Deposited into Bank Rs.10,000.
Sold goods for Cash Rs.28,000 and paid half the proceeds into Bank.
3 Purchased goods for Rs.7,000 from Manoj & Co. on Credit.
5 Received a Money Order from Suresh Rs.500.
8 Received Rs.2,800 from Govind. Paid Rs.1,000 into Bank.
10 Received a cheque for Rs.7,600 from Subhash in full settlement of Rs.8,000 due from him.
12 Settled the account of Manoj & Co. by payment of Rs.6,600
half Cash and half by cheque.
13 Cheque received from Subhash deposited into Bank.
15 Paid for purchase of Machinery by cheque Rs.20,000.
16 Paid wages for the erection of above Machinery Rs.1,000.
17 Cheque issued for Rs.6,000 in favour of Sachdeva & Co. for purchase of furniture.
20 Purchased goods from Kalpna Garments for Rs.10,500 on credit.
Received a Bank Draft for Rs.4,800 from Damodar & Co. in full settlement of Rs.5,000 due from
them. Sent the draft to bank.
24 Bank issued a draft for Rs.10,000 in favour of Kalpna Garments on our request. Bank charged Rs.25
for issuing the draft. Account of Kalana Garments was fully settled.
26 Drew from bank for petty cash Rs.100.
28 Paid salary by cheque Rs.6,000.
30 Bank Charges Rs.50 and Interest Rs.1,620 charged by bank.
Deposited into bank the entire balance after retaining Rs.4,000 at office
Q.7. Prepare a Cash Book with Cash and Bank Columns from the following transactions:−
2017
March 1 Cash in hand Rs.1,800 and at Bank Rs.11,000.
5 Received a cheque for commission Rs.3,960. Cheque was immediately deposited into bank.
7 Bought goods for cheque Rs.7,000.
8 Bought goods for cash Rs.500.
10 Purchased a Computer and payment made by cheque of Rs.5,000.
14 Paid Trade Expenses Rs.105.
16 Paid into Bank Rs.1,000.
18 Ramesh who owed us Rs.500 became bankrupt and paid us 50 paise in a ₹.
20 Received Rs.400 from Manohar and allowed him discount Rs.10.
23 Withdrew from Bank Rs.400.
23 Paid Rs.300 to Ghanshyam Dass & Co. They allowed us discount Rs.10.
24 Received Rs.2,000 from Hari Ram and deposited the same into Bank.
25 Withdrew from Bank for private expenses Rs.300.
27 Sold goods for cash Rs.200.
28 Received cheque for goods sold Rs.9,000.
29 Received repayment of a loan of Rs.5,000 and deposited Rs.3,000 out of it into Bank.
30 Bank charges as per Book Rs.5.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book
JUNE 10,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book Q.8. Compile a Two Column Cash Book from the following transactions of Kavita Garments∶−
2017
Feb.
1
Cash in hand Rs.7,500; Cash at bank Rs.8,000.
3 Received a cheque of Rs.5,880 for cash sales. Cheque was immediately deposited into bank.
5 Received two cheques from Kalpna each of Rs.10,000.
6 First cheque received from Kalpna is endorsed to Sunita in full settlement of Rs.10,200.
Second cheque is sent to bank for collection.
8 Second cheque received from Kalpna is returned as dishonoured by the bank.
The bank has debited our account with Rs.20 as bank charges on this cheque.
10 Received cheque from sale of old furniture Rs.1,950. Next day, the cheque is endorsed to a creditor
Ramesh in full settlement of Rs.2,000 due to him.
12 Purchased goods from Mohan on Credit for Rs.8,000.
15 Settled Mohan’s account by giving a cheque for Rs.4,000 and Cash Rs.3,900.
16 Goods sold to Pawan for Rs.6,000. He paid the amount in cash immediately after deducting 212%
cash discount.
20 Paid salary by cheque Rs.5,000.
25 Cash sale to date Rs.50,000 of which Rs.40,000 banked.
26 Paid electric bill of Rs.2,000 for January by cheque. Paid Rent for January Rs.1,500.
27 Cash purchases Rs.5,000, issued a cheque.
28 Deposited into bank cash retaining Rs.7,500.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 11 :- Books of Original Entry-Cash Book Q.9. Prepare a Petty Cash Book on the Imprest System from the following:
2017
April 1 Received Rs.10,000 for Petty Cash.
3 Paid Cartage Rs.800.
4 Paid Bus Fare Rs.400; Speed Post Rs.200.
6 Paid for Stationery Rs.700.
7 Paid for Courier Services Rs.300.
9 Paid for Taxi fare Rs.800; Wages Rs.300.
10 Paid for Wages Rs.400; Charity Rs.500
11 Paid for Newspaper bill Rs.600.
12 Paid for soap Rs.320; Speed post charges Rs.300.
13 Paid for Postage Rs.780.
14 Paid for Repairs of Chairs Rs.500.
15 Paid for Refreshment to customers Rs.900.
Q.10. Record the following transactions in a Petty Cash Book with suitable columns. The book is kept on
imprest system, amount of imprest being Rs.4,000.
2017
April 1 Petty cash in hand Rs.540, Received cash to make-up the imprest.
Paid for office cleaning Rs.100.
April 4 Paid railway fare Rs.320, bus fare Rs.280, wages Rs.150.
April 5 Bought shorthand notebooks for office Rs.370.
April 7 Paid carriage on parcels Rs.150, paid for wages Rs.220.
April 10 Bought stamps for Rs.300, envelopes for Rs.450 and an accounts register for Rs.400.
April 12 Paid for repairs Rs.200, gave tips to office peon Rs.150.
April 13 Gave charity Rs.100, served tea to customers Rs.250.
April 15 Paid for wages Rs.160, rewards to servant Rs.100.
------------------------------------------------------------------------------------------------------------------------------------------
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 12-Introduction to Computers
JUNE 11,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 12-Introduction to Computers
Meaning of Computer--
A computer is a machine that accepts data as input, processes
that data using programs, and outputs the processed data as
information. Many computers can store and retrieve
information using hard drives. Computers can be connected
together to form networks, allowing connected computers to
communicate with each other.
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Computer is an electronic device which is used to store the data, as per given instructions it gives
results quickly and accurately.
Data : Data is a raw material of information.
Information : Proper collection of the data is called information.
Characteristics of Computer
SPEED : In general, no human being can compete to solving the complex computation, faster than
computer.
ACCURACY : Since Computer is programmed, so what ever input we give it gives result with
accuratly.
STORAGE : Computer can store mass storage of data with appropriate formate.
DILIGENCE : Computer can work for hours without any break and creating error.
VERSATILITY : We can use computer to perform completely different type of work at the same
time.
POWER OF REMEMBERING : It can remember data for us.
NO IQ : Computer does not work without instruction.
NO FEELING : Computer does not have emotions, knowledge, experience, feeling
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 12-Introduction to Computers
JUNE 12,2020
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SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 12-Introduction to Computers
Computer and its components
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to view it.
Computer : Computer itself a combination of different type of
separate electronic device. i.e. Computer only will be computer if it
has INPUT DEVICE, PROCESS UNIT, and OUTPUT DEVICE.
Central Processing Unit (CPU) : It is heart and mind of the
computer without this unit computer unable to process.
Keyboard : This is an input device which is used to input the data
into the computer.
Mouse : This is also an input device which is used to input the data
into the computer.
Monitor : This is an output device which is used to show the result
of the instructions.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 12-Introduction to Computers
JUNE 13,2020
Go through content given in Chapter one Meaning and Objective of Accounting from
extramarks learning app if content is not available then please refer to the following
for detailed understanding.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 12-Introduction to Computers Limitations of Computers
Limitations are the drawbacks of the computer system in which humans outperform them.
1.Lack of common-sense
This is one of the major limitations of computer systems. No matter how efficient, fast and reliable
computer systems might be but yet do not have any common sense because no full-proof algorithm
has been designed to programme logic into them. As computers function based on the stored
programme(s), they simply lack common sense.
2.Zero IQ
Another of the limitations of computer systems is that they have zero Intelligence Quotient (IQ).
They are unable to see and think the actions to perform in a particular situation unless that
situation is already programmed into them. Computers are programmable to complete each and
every task, however small it may be.
3.Lack of Decision-making
Decision-making is a complicated process involving information, knowledge, intelligence, wisdom,
and ability to judge. The computer system does not have the ability to make decisions on their own
because they do not possess all the essentials of decision-making.
They can be programmed to take such decisions, which are purely procedure-oriented. If a
computer has not been programmed for a particular decision situation, it will not take a decision
due to lack of wisdom and evaluation faculties. Human beings, on the other hand, possess this great
power of decision-making.
4.Computers can’t Decide
Computers are incapable of decision making as they do not possess the essential elements
necessary to take a decision i.e. knowledge, information, wisdom, intelligence and the ability to
judge.
5.Computers can’t Express their Ideas
In any type of research ideas plays a vital role. In this context, computers can’t express their ideas.
6.Computers can’t Implement
Though computers are helpful in storage of data and can contain the contents of encyclopedias
even, but only humans can decide and implement the policies.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 12-Introduction to Computers
Elements of a Computer System: A computer system is a set of six elements viz.:
(i) Hardware,
(ii) Software,
(iii) People,
(iv) Procedures,
(v) Data and
(vi) Connectivity.
(i) Hardware:
The physical components of a computer constitute its Hardware. These include keyboard, mouse,
monitor and processor. Hardware consists of input devices and output devices that make a
complete computer system.
Examples of input devices are keyboard, optical scanner, mouse and joystick which are used to feed
data into the computer. Output devices such as monitor and printer are media to get the output
from the computer.
(ii) Software:
A set of programs that form an interface between the hardware and the user of a computer system
are referred to as Software.
They are of six types:
(a) System software:
A set of programs to control the internal operations such as reading data from input devices, giving
results to output devices and ensuring proper functioning of components is called system software.
(b) Application software:
Programs designed by the user to perform a specific function, such as accounting software, payroll
software etc.
(c) Operating system:
A set of tools and programs to manage the overall working of a computer using a defined set of
hardware components is called an operating system. It is the interface between the user and the
computer system.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 12-Introduction to Computers Certain special purpose programs that are designed to perform a specialized task, such as functions
to copy, cut or paste files in a computer, formatting a disk etc.
(e) Language processors:
Special software to accept data and interpret it in the form of Machine /Assembly language
understandable by a computer. It also ensures the correctness of language syntax and errors.
(f) Connectivity software:
A set of programs and instructions to connect the computer with the main server to enable sharing
of resources and information with the server and other connected computers.
(iii) People: The most important element of a computer system is its users. They are also called live-ware of the
computer system.
The following types of people interact with a computer system:
(a) System Analysts:
People who design the operation and processing of the system.
(b) System Programmers:
People who write codes and programs to implement the working of the system
(c) System Operators:
People who operate the system and use it for different purposes. Also called the end users.
(iv) Procedures:
Procedure is a step by step series of instructions to perform a specific function and achieve desired
output.
SUBODH PUBLIC SCHOOL,RAMBAGH CROSSING Chapter 12-Introduction to Computers
In a computer system, there are three types of procedures:
(a) Hardware oriented procedure:
It defines the working of a hardware component.
(b) Software oriented procedure:
It is a set of detailed instructions for using the software.
(c) Internal procedure:
It maintains the overall internal working of each part of a computer system by directing the flow of
information.
(v) Data:
The facts and figures that are fed into a computer for further processing are called data. Data is raw
until the computer system interprets it using machine language, stores it in memory, classifies it for
processing and produces results in conformance with the instructions given to it. Processed and
useful data is called information which is used for decision making.
(vi) Connectivity:
When two or more computers are connected to each other, they can share information and
resources such as sharing of files (data/music etc.), sharing of printer, sharing of facilities like the
internet etc. This sharing is possible using wires, cables, satellite, infra-red, Bluetooth, microwave
transmission etc.
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