Chapter 8- Special Purpose Books 2 Cash Book

Q.1 Record the following transactions in the Purchases Book of Subhash General Stores, Delhi:

2019
May Bought from M/s. Chunni Lal Mam Raj, Delhi:
1
100 bags of ITC Wheat Atta @ ₹ 530 per bag
50 bags of Rice Basmati @ ₹ 500 per bag
Less: Trade Discount @ 10%
CGST and SGST @ 6% each was payable on the purchases
May Bought from M/s. Kanodia Oil Mills, Delhi:
3
40 tins Oil @ ₹ 1,500 per tin
20 tins Banaspati Oil @ ₹ 900 per tin
Less: Trade Discount @ 5%
CGST and SGST @ 6% each was payable on the purchases
May Purchased from M/s. Gupta Bros., Hapur:
4
25 bags gram @ ₹ 480 per bag
40 bags oats @ ₹ 25 per bag
Less: Trade Discount @ 5%
IGST @ 12% was payable on the purchases

The solution can be presented as follows

Q.2 Verma Bros. Kolkata carry on business as wholesale cloth dealer. From the following, write up their Purchases
Book for January, 2019:

Jan. 3 Purchased from M/s. Birla Mills, Kolkata:

100 pieces long cloth @ ₹ 800 each
50 pieces shirting @ ₹ 500 each
CGST and SGST payable @ 6% each
Jan. 8 Purchased for cash from M/s. Ambika Mills, Ahmedabad:
50 pieces muslin @ ₹ 1,000 each
IGST payable @ 12%
Jan. 15 Purchased from M/s. Arvind Mills, Ahmedabad:
20 pieces coating @ ₹ 2,000 each
10 pieces shirting @ ₹ 500 each
IGST payable @ 12%
Jan. 20 Purchased from M/s. Bharat Typewriters Ltd. Kolkata:
5 typewriters @ ₹ 1,400 each
CGST and SGST payable @ 6% each

Show the posting from Purchases Book to Ledger accounts also.

The solution can be presented as follows

Q.3 From the following transactions of Kamal, Guwahati, prepare Purchases Book and post into Ledger:

2019
April 1 Purchased from Videocon India Ltd., Kolkata;
30 Colour T. Vs @ ₹ 15,000 each, less Trade Discount @ 10% plus IGST @ 12%. Freight
charges ₹ 2,000.
April 15 Purchased from Sony India Ltd., Guwahati:
10 colour T. Vs @ ₹ 20,000 each less Trade Discount @ 10% plus CGST and SGST @ 6%
each.
April 20 Purchased from Music India Ltd., Delhi:
10 music systems @ ₹ 10,000 each less Trade Discount @ 15% plus IGST @ 12%.
April 30 Purchased from Videocon India Ltd., Kolkata:
5 washing machines @ ₹ 15,000 each less Trade Discount @ 20%, plus IGST @ 12%,
Freight charges ₹ 1,000.

The solution can be presented as follows

Q.4 The following purchases were made by Karam, Kolkata, during the month of April, 2019. Prepare Purchases Book
and post into Ledger Accounts:

2019
April 8 Purchased on credit from Subodh Brothers, Delhi:
5 chests of tea @ ₹ 7,000 per chest at a Trade Discount of 10% plus IGST @ 12% and packing and
other charges ₹ 500.
April 12 Purchased in cash 20 boxes of tea @ ₹ 500 per box at a Trade Discount of 10% plus CGST and SGST
@ 6% each.
April 18 Purchased from Raj Furnishing House:
3 show cases @ ₹ 7,500 per case at a Trade Discount of 10% plus CGST and SGST @ 6% each.
April 20
Purchased from Siliguri Tea Agency, Siliguri, West Bengal: 15 boxes of tea @ ₹ 600 per box at a Trade
Discount of 10% plus CGST and SGST @ 6% each and packing and other charges ₹ 50.

April 25 Purchased from Darjeeling Tea House, Darjeeling, West Bengal: 5 kgs of Special Green Tea @ ₹ 500
per kg at a Trade Discount of 10% plus CGST and SGST @ 6% each for household consumption of
proprietor.

The solution can be presented as follows

Q.5 Prepare Sales Book from the following transactions of Hema Traders, Kolkata dealing in furniture. Open the
Ledger Accounts also:

2019
April 1 Sold to M/s. Gupta Furniture House, Delhi:
100 Chairs @ ₹ 1,500 per chair
40 Tables @ ₹ 2,000 per table
Less: Trade Discount @ 5%
Charged IGST @ 12%
April 10 Sold to M/s. Ajit Singh & Sons, Kolkata:
150 Desks @ ₹ 1,000 per desk
160 Chairs @ ₹ 1,500 per chair
Less: Trade Discount @ 5%
Charged CGST and SGST @ 6% each
April 15 Sold to M/s. Ideal Furniture House, Darjeeling:
10 Sofa sets @ ₹ 75,000 each
5 Almirahs @ ₹ 3,000 each
25 Office Tables @ ₹ 4,000 each
Less: Trade Discount @ 10%
Charged CGST and SGST @ 6% each

The solution can be presented as follows

Q.6 From the following particulars, prepare a Sales Book of M/s. Gyan Prasad & Bros., Delhi, dealers of stationery
and post into Ledger Accounts:

2019
July 1 Sold to M/s. Stationery Mart, Delhi:
10 reams white paper @ ₹ 300 per ream
Charged CGST and SGST @ 6% each
July 2 Sold to M/s. Puran Chand & Co., Chandigarh:
6 dozen pens @ ₹ 200 per dozen
Charged IGST @ 12%
July 10 Sold old newspaper for ₹ 62
July 25 Sold on credit to M/s. Rahim & Co., Varanasi:
10 Drawing Boards @ ₹ 500 per piece
Charged IGST @ 12%
July 30 Sold to M/s. Kay Cee & Co., Delhi:
4 Portable Study Tables @ ₹ 5,000 per table
Charged CGST and SGST @ 6% each

The solution can be presented as follows

Q.7 From the following particulars, prepare Sales Book of Gupta & Co., Kolkata who deals in furniture:

2019
Jan. 5 Sold to Hari & Co., Kolkata:
10 Tables @ ₹ 1,100 each
20 Chairs @ ₹ 1,000 each
Charged CGST and SGST @ 6% each
Jan. 10 Sold to M/s. Sharma & Co., Delhi:
5 Almirahs @ ₹ 5,000 each
5 Stools @ ₹ 1,000 each
Charged IGST @ 12%
Jan. 20 Sold old printer for ₹ 600 to Raja & Co., Kolkata
Charged CGST and SGST @ 6% each
Jan. 25 Sold to M/s. Sohan Lal & Bros., Kolkata:
5 Tables @ ₹ 2,500 each
1 Revolving Chair @ ₹ 5,000
Charged CGST and SGST @ 6% each

Show the Posting from Sales Book to Ledger Accounts.

The solution can be presented as follows

Q.8 Prepare Purchases and Sales Book from the following transactions of Rahul, Bengaluru:

2019
Jan. 1 Bought from M/s. Uma Datt, Mumbai:
1,000 Registers @ ₹ 80 each
50 Reams Paper @ ₹ 250 per ream
Less: Trade Discount 25%
Plus: IGST @ 5%
Jan. 2 Sold to Shri Dayal, Bengaluru:
250 Registers @ ₹ 85 each
5 Reams paper @ ₹ 300 per ream
Charged CGST and SGST @ 2.5% each
Jan. 8 Bought from BILT, Delhi:
100 Reams Ruled Paper @ ₹ 600 per ream
Less: Trade Discount 15%
Plus IGST @ 5%
Jan. 12 Sold to Gupta Bros., Delhi:
250 Registers @ ₹ 85 each
50 Reams Ruled Paper @ 700 per ream
Less: Trade Discount 5%, charged IGST @ 5%
Jan. 18 Sold to Ram Saran Das:
20 copies Double Entry Book Keeping @ ₹ 85 each
Jan. 25 Bought from Hari Ram, Delhi:
1,000 pens @ ₹ 10 each
Less: Trade Discount 15%
Plus IGST @ 5%
Jan. 31 Sold to Rishi Kumar, Bengaluru:
300 Registers @ ₹ 90 each
50 Reams Ruled Paper @ ₹ 700 per ream
20 Reams Paper @ ₹ 300 per ream
Less: Trade Discount 10%, charged CGST and SGST @ 2.5% each

The solution can be presented as follows

Q.9 Prepare Purchases Return Book of Aruna Stores, Kolkata from the following transactions and post them into
Ledger:

2019
Jan. 10 Returned to Sohan & Sons, Kolkata:
10 Rohtas fans 36'' @ ₹ 1,250 each
Trade Discount 10%
CGST and SGST was paid @ 6% each
Jan. 25 Returned to Ram & Co., Delhi:
25 Tubelights @ ₹ 200 each
IGST was paid @ 12%

The solution can be presented as follows

Q.10 Record the following transactions in the Purchases Return Book of Kamla Stores, Delhi for April, 2019:

2019
April 6 Returned goods to Ramesh Brothers, Delhi purchased for ₹ 5,000 plus CGST and SGST @ 6% each
April 8 Returned goods to Sohan Brothers, Meerut purchased for ₹ 10,000 plus IGST @ 12%
April Returned goods to Mahesh Brothers of ₹ 2,000 plus CGST and SGST @ 6% each
17

The solution can be presented as follows

 TS Grewal Solutions for Class 11 Accountancy Chapter 8 - Special
Purpose Books II- Other Books

Q.11 Prepare Sales Return Book of Shiv Shankar, Delhi from the following transactions and post them into Ledger:

2019
Feb. 10 Rama Stores, Delhi returned:
2 Televisions Sony sold @ ₹ 20,000 each plus CGST and SGST @ 9% each
Feb. 20 Sohan Singh & Co. Dehradun returned:
3 Washing Machines Videocon sold @ ₹ 10,000 each plus IGST @ 18%

The solution can be presented as follows

Q.12 Enter the following transactions in the Sales Return Book of Raj Computers, Delhi:

2019
July Sohan & Sons returned 2 Laptops HP sold @ ₹ 40,000 each plus CGST and SGST @ 6% each
1
July
Ramesh & Sons, Noida returned 2 'Ricoh' printers sold @ ₹ 10,000 each plus IGST @ 12%
2
July
Dinesh, Chandigarh returned 10 HP Desktops sold @ ₹ 20,000 each plus IGST @ 12% for delayed supply
25
July Computer Mouse returned by Ravi, Delhi sold to him for cash ₹ 2,000 plus CGST and SGST @ 6% each
26

Write up the Ledger Accounts.

The solution can be presented as follows

Q.13 Prepare Returns Inward and Return Outward Books of Manoj, Mumbai from the following transactions and post
them into Ledger Accounts:

2019
March 1 Mathur Bros., New Delhi, returned:
5 pairs of Shoes for being defective @ ₹ 2,000 per pair
Less: Trade Discount 10%, IGST was charged @ 18%
March 5 Returned to Kanpur Leather Private Ltd., Kanpur:
100 pairs of Chappals being not up to the approved sample. They were purchased @ ₹ 300 per pair
Less: Trade Discount 15%
IGST was paid @ 18%
March 12 Baluja Shoes Co., Mumbai, returned 12 pairs of ladies chappals sold to them @ ₹ 4,000 per pair
Less: Trade Discount 10%, CGST and SGST was charged @ 9% each
March 20 Returned to Bata Shoes Pvt Ltd., Mumbai:
100 pairs B.S.C Canvas Shoes @ ₹ 500 per pair
Less: Trade Discount 15%
CGST and SGST was paid @ 9% each

The solution can be presented as follows

Q.14 (Closing Entries). Give the necessary entries in the Journal Proper of Ram on 31st March, 2019 to close their
books:
Freehold Premises ₹ 30,000; Plant and Machinery ₹ 20,000; Sundry Debtors ₹ 25,000; Purchases ₹ 37,500; Sales ₹
95,000; Discount (Dr.) ₹ 150; Discount (Cr.) ₹ 175; Sundry Creditors ₹ 12,500; Carriage Inwards ₹ 375; Carriage
Outwards ₹ 600; Furniture and Fixtures ₹ 2,500; Wages ₹ 5,000; Bad debts ₹ 750; Salaries ₹ 3,600; Commission (Cr.) ₹
2,125; Capital Account − ₹ 25,000; Bills Payable ₹ 7,500; Bills Receivable ₹ 9,000; Trade Expenses ₹ 2,550; Ram's
Loan Account ₹ 20,000; Cash in Hand ₹ 75; Cash at Bank ₹ 3,125.

The solution can be presented as follows

Q.15 (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.

The solution can be presented as follows

Q.16 (Adjustment Entries) From the following information available on 31st March, 2019, pass the necessary
Adjustment Entries in the Journal for the year ending on that date:
(i) Interest accrued ₹ 2,500.
(ii) Wages for March, 2019 outstanding ₹ 10,000.
(iii) Insurance prepaid ₹ 1,500.
(iv) Commission due to manager 6% on net profit after charging such commission. The profit before charging such
commission was ₹ 1,06,000.
(v) Interest due on loan but not paid. Loan of ₹ 1,50,000 was taken at 9% p.a. 9 months before end of the year.

The solution can be presented as follows

Q.17 Enter the following transactions in proper Subsidiary Books of Ram, Lucknow (UP) for the month of January
2019:

2019 ₹
Jan. 1 Sold goods to Ramesh of Delhi for ₹ 15,000, charged IGST @ 12%
Jan. 1 Bought goods from Hari Ram, Kanpur (UP) for ₹ 8,000, plus CGST and SGST @ 6% each
Jan. 2 Ramesh returned goods 1,000
Jan. 2 Sold goods to Dina Nath, Lucknow of ₹ 10,000, charged CGST and SGST @ 6% each
Jan. 2 Purchased goods form Mangal, Kolkata of ₹ 50,000, plus IGST @ 12%
Jan. 4 Returned goods to Mangal 5,000
Jan. 4 Sold goods to Zakir Hussain, Lucknow of ₹ 5,000 plus CGST and SGST @ 6% each
Jan. 5 Zakir Hussain returned goods 500
Jan. 7 Returned goods to Hari Ram 500
Jan. 9 Purchased goods from Raghunath, Delhi of ₹ 10,000 subject to a Trade Discount of 10%, plus IGST
@ 12%
Jan. 10 Sold goods to Raja Ram subject to Trade Discount of 5%, charged CGST and SGST @ 6% each 5,000

The solution can be presented as follows

Q.18 Write up Purchases and Sales Books from the following transactions of Kalyan Silks, Kochi, Kerala given for
April, 2019 and post the totals in the Ledger.

2019
April 1 Purchased from Ram Prasad, Chennai:
100 metres Silk @ ₹ 400 per metre
75 metres Velvet @ ₹ 150 per metre
Plus IGST @ 12%
April 10 Sold to Rati Ram, Ahmedabad:
60 metres Silk @ ₹ 500 per metre
10 metres Velvet @ ₹ 200 per metre
Charged IGST @ 12%
April 12 Sold to Ramaswami, Kochi
10 metres Silk @ ₹ 550 per metre
10 metres Velvet @ ₹ 200 per metre
Charged CGST and SGST @ 6% each
April 18 Roop Narain & Sons Kochi purchased from us:
10 metres Silk @ ₹ 550 per metre
5 metres Velvet @ ₹ 200 per metre
Allowed Trade Discount 10%, charged CGST and SGST @
6% each
April 22 Purchased from Man Mohan Lal, Varanasi:
Shirting Cloth ₹ 10,000
Sarees ₹ 60,000
Received Trade Discount 10%, plus IGST @ 12%
April 23 Sold to Brij Mohan & Bros., Mathura:
Shirting Cloth ₹ 7,000
Sarees ₹ 25,000
Charged IGST @ 12%

The solution can be presented as follows

Q.19 Record the following transactions of Prabhat Electric Co., Delhi in the proper subsidiary books:

2019
Jan. 1 Sold to Grover & Co., Kanpur:
10 Crompton Water Coolers @ ₹ 6,000 each
5 Pedestal Fans @ ₹ 2,000 each
Trade Discount 10%, charged IGST @ 12%
Jan. 5 Purchased from Ram & Bros., Delhi:
25 Videocon Washing Machines @ 7,000 each
10 Wall Fans @ ₹ 1,500 each
Trade Discount 25%, plus CGST and SGST @ 6% each
Jan. 10 Purchased for cash from Raja & Co., Delhi:
10 Electric Kettles @ ₹ 750
Plus CGST and SGST @ 6% each
Jan. 15 Sold to Mahesh Bros., Chandigarh:
5 Crompton Water Coolers @ ₹ 7,000 each
2 Pedestal Fans @ ₹ 2,500 each
Charged IGST @ 12%
Jan. 18 Returned to Ram & Bros.:
2 Videocon Washing Machines being defective
Jan. 20 Purchased from Sethi & Co., Delhi:
20 Toasters @ ₹ 800
They charged CGST and SGST @ 6% each
Jan. 27 Mahesh Bros. returned one Crompton Water Cooler, it being defective
The solution can be presented as follows
Q.20 R. Chetan, Kolkata has the following balances in his books on 1st March, 2019:
Cash ₹ 15,400; Cash at Bank ₹ 82,500; Stock ₹ 1,92,500; Plant and Machinery ₹ 4,40,000.
Sundry Debtors: Rajesh ₹ 27,500; James ₹ 13,750.
Sundry Creditors: Rao ₹ 19,250, Samanta; ₹ 35,750; Capital ₹ 7,16,650.
The following are the transactions for the month of March 2019:

2019 ₹
March 1 Cash Sales* 2,000
March 2 Purchases machinery by cheque* 5,000
March 4 Paid salaries by cheque 2,750
March 7 Paid wages 440
March 9 Rajesh settled his account by cheque less 5% discount
March 11 Sold goods on credit to James, Patna** 10,000
March 13 Sent a credit note to James for goods returned** (Including IGST reversed) 2,240
March 18 Paid to Rao by cheque in full settlement 18,000
March 20 Took loan from Bank of Baroda 50,000
March 22 Withdrawn from bank for personal purposes 2,500
March 25 Bought goods from Samanta, Delhi** 5,000
March 27 Paid corporation tax by cheque 1,155
March 30 Cash sales (Including CGST and SGST @ 6% each) and paid into bank 4,480
March 31 All cash in hand, with the exception of ₹ 825 retained for change, was paid into the bank

Transactions marked with (*) are intra-state transactions subject to CGST and SGST @ 6% each. Transactions
marked with (**) are inter-state transactions subject to IGST @ 12%.
Record these transactions in his subsidiary books, post to the Ledger and prepare a Trial Balance as on 31st March,
2019.
The solution can be presented as follows
Q.21 On 1st March, 2019, Shri Kailash Chand, Lucknow commenced business with cash ₹ 50,000. The following are
his transactions for the month of March, 2019. Record them in proper books, post them to the Ledger and take out a
Trial Balance:

2019 ₹
March Bought goods for cash* 5,000
1
Purchased from Hari, Lucknow*:
5 Laptops @ ₹ 35,000 each
5 Desktops @ ₹ 25,000 each
Less: Trade Discount 15%
March Purchased computer & printer from M/s. Computer Mart against cash for office use* 20,000
2
March Deposited into bank 15,000
5
March Sold goods to Shri Ramesh Chand, Kanpur*:
7
2 Laptops @ ₹ 32,000 each
2 Desktops @ ₹ 24,000 each
March 75,000
Received Cheque from Shri Ramesh Chand on account
10
March Received another Cheque in full settlement from Ramesh Chand 49,440
14
March Sold goods to Jagdish, Kolkata**:
15
2 Laptops @ ₹ 35,000 each
2 Desktops @ ₹ 25,000 each
Less: Trade Discount 5%
March
Bought from Shyam Lal, Delhi**:
18
10 Keyboards @ ₹ 1,000 each
10 Mouse @ ₹ 500 each
March 17,000
Drew cash from bank for office
20
March Paid to Shyam Lal in full settlement 16,500
21
March Cash Sales 5 Keyboards @ ₹ 1,200 each and 5 Mouse @ ₹ 600 each*
23
March Paid Salary 2,500
25
March Paid Rent* 1,500
28
March Paid into bank 5,000
30
March Drew cash for personal expenses 500
31

Transactions marked with (*) are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked with (**) are inter-state transactions subject to IGST @ 12%.
The solution can be presented as follows
Q.22 On 1st January, 2019, Ram of Kolkata commenced business with a capital of ₹ 50,000 and entered into following
transactions:
Pass the following transactions through proper books to the Ledger. Take out a Trial Balance as on 31st January,
2019. The Cash Book must be balanced.

2019 ₹
Jan. 1 Opened a Bank Account and Deposited 12,500
Purchased Goods against Cash Payment* 20,000
Purchased furniture for Shop* 5,000
Sold goods to R. Raman, Kolkata* 5,000
Jan. 2 Bought goods from Man Mohan, Delhi** 10,000
Jan. 3 Bought stationery and paid by cash 1,000
Jan. 5 Received cash from R. Raman 5,300
Discount allowed to him 300
Jan. 6 Sold goods to Bimal, Kolkata* 7,500
Jan. 8 Bimal returned part of the goods supplied on the 6th instant 1,500
Jan. 10 Paid cash into bank 1,000
Jan. 12 Paid wages 1,500
Jan. 13 Bought on credit from the Union Furniture Co., Kolkata office desk* 1,500
Jan. 19 Paid wages 1,500
Jan. 21 Paid to Man Mohan by cheque 10,700
Discount received 500
Jan. 21 Sold goods to Ramesh, Guwahati including IGST** 6,720
Jan. 22 Received cheque from Bimal 6,000
Jan. 23 Bought goods from Man Mohan, Delhi** 7,000
Jan. 24 Drew by cheque for personal use 2,000
Jan. 27 Paid wages 1,500
Jan. 31 Rent due to landlord* 1,000

Transactions marked with (*) are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked with (**) are inter-state transactions subject to IGST @ 12%.

The solution can be presented as follows