Q.Journalise the following transactions in the books of Mr. Rahul for April 2024:

This is a full practical problem covering nearly every rule of journalising taught in this chapter, together in one running set of transactions.

Working: (ii) net purchase = 15,000 − 1,500 = 13,500, GST 12% = 1,620 (810+810), total payable 15,120. (iii) GST on 20,000 = 2,400 (1,200+1,200), invoice 22,400, discount 5% of 20,000 = 1,000, cash received 21,400. (ix) GST on 50,000 = 9,000 (4,500+4,500), total 59,000. (x) GST on 8,000 = 1,440 (720+720), total 9,440.

(i) Started business with cash and furniture — both Real accounts coming in; Capital (Personal, the giver) is credited with the total.

(ii) Trade discount (10% of 15,000 = 1,500) is deducted BEFORE recording, giving a net purchase of ₹13,500; GST @ 12% on 13,500 = ₹1,620 (CGST 810 + SGST 810); total payable to Suresh = 15,120.

(iii) GST @ 12% on 20,000 = ₹2,400 (Output CGST 1,200 + Output SGST 1,200); invoice value = 22,400. Cash discount 5% of the basic sale value (20,000) = ₹1,000; cash actually received = 22,400 − 1,000 = 21,400.

(iv) Wages (Nominal, an expense) debited; Cash (Real, goes out) credited.

(v) Drawings (Personal, the receiver — the proprietor) debited; Cash credited.

(vi) Goods given as charity are no longer available for sale — Purchases (Real, effectively goods going out) is credited, and Charity (Nominal, an expense to the business) is debited. GST input-credit reversal on goods given away is a further real-world GST requirement, ignored here as it is beyond this chapter's syllabus level.

(vii) Goods lost by fire, being uninsured, is a total loss — Loss by Fire (Nominal, a loss) is debited in full; Purchases (goods going out) is credited.

(viii) Cash (Real, comes in) debited; Commission Received (Nominal, an income) credited.

(ix) GST @ 18% on 50,000 = ₹9,000 (Input CGST 4,500 + Input SGST 4,500); total paid = 59,000.

(x) GST @ 18% on 8,000 = ₹1,440 (Input CGST 720 + Input SGST 720); total paid = 9,440.

Work transaction by transaction: first identify the two (or more) accounts, classify each, apply the rule, then handle any trade discount (deduct before recording), GST (split CGST/SGST for local, add to both sides equally) and cash discount (record separately) as a LAST step once the base figure is fixed.

The most common slip across a long transaction list like this is forgetting that trade discount is deducted BEFORE the purchase/sale is recorded (so it never appears as a separate line), while cash discount, GST and the base transaction value all remain visible in the entry — mixing up which of the two discounts 'disappears' before recording is the single most tested trap in this chapter.