alise the following transactions in the books of Mohan Singh, Delhi: t a Rai of
ID: 2395655 • Letter: A
Question
alise the following transactions in the books of Mohan Singh, Delhi: t a Rai of Alwar, Rajasthan who owed Mohan Singh 25,000 became insolvent and Journ received 60 paise in a rupee as full and final settlement. i)Mohan Singh owes to his landlord 10,000 as rent. Charge depreciation of 10% on furniture costing 50,000. i at (? () Salaries due to employees 20,000. ) Sold to Sunil goods in cash of 10,000 less 10% trade discount plus CGST and SGST @ 6% each and received a net of?8,500. (1) Provided interest on capital of?1,00.000 @ 10% per annum. (vii) Goods lost in theft_-7 5,000, which were purchased paying IGST @ 12% from Alwar, Rajasthan Hint: (vi) Loss of Stock by Theft A/c ..Dr 5,600 To Purchases A/c To Input IGST A/c 5,000 ?600]Explanation / Answer
Books of Mohan Singh, Delhi
Journal
Explanation:
(i) Cash received from Raj = 25,000 x 60%
= ?15,000
(v) List price of goods sold = ?10,000
Less: Trade discount = 10% i.e. 10,000 x 10% = ?1,000
Sale price = 10,000 - 1,000
= ?9,000
CGST = 9,000 x 6%
= ?540
SGST = 9,000 x 6%
= ?540
Total amount receivable = 9,000 + 540 + 540
= ?10,080
Net amount received = ?8,500
Hence, cash discount allowed = 10,080 - 8,500
= ?1,580
(vii) When goods are lost, input GST paid on purchase cannot be set off against output GST on sale since such goods are not available for sale. Hence, input IGST paid on purchase is reversed at the time of loss of goods
Date Particulars L.F. Debit (?) Credit (?) (i) Cash A/c Dr. 15,000 Bad debts A/c Dr. 10,000 To Raj 25,000 (ii) Rent A/c Dr. 10,000 To Rent Outstanding A/c 10,000 (iii) Depreciation A/c Dr. 5,000 To Furniture A/c 5,000 (iv) Salaries A/c Dr. 20,000 To Salaries outstanding A/c 20,000 (v) Cash A/c Dr. 8,500 Discount allowed A/c Dr. 1,580 To Sales A/c 9,000 To Output CGST A/c 540 To Output SGST A/c 540 (vi) Interest on capital A/c Dr. 10,000 To Capital A/c 10,000 (vii) Loss of stock by theft A/c Dr. 5,600 To Purchase A/c 5,000 To Input IGST A/c 600Related Questions
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