*Posting* Record journal entries for the following transactions in the books of Anudeep of Delhi: (a) Bought g

Numerical Questions · Q22

Q. Posting Record journal entries for the following transactions in the books of Anudeep of Delhi:

(a) Bought goods ₹2,00,000 from Kanta of Delhi (CGST @ 9%, SGST @ 9%)

(b) Bought goods ₹1,00,000 for cash from Rajasthan (IGST @ 12%)

(d) Paid for Railway Transport ₹10,000 (CGST @ 5%, SGST @ 5%)

(e) Sold goods ₹1,20,000 to Sidhu of Delhi (CGST @ 9%, SGST @ 9%)

(f) Bought Air-Condition for office use ₹60,000 (CGST @ 9%, SGST @ 9%)

(g) Sold goods ₹1,50,000 for cash to Sunil to Uttar Pradesh (IGST 18%)

(h) Bought Motor Cycle for business use ₹50,000 (CGST 14%, SGST @ 14%)

(i) Paid for Broadband services ₹4,000 (CGST @ 9%, SGST @ 0%)

(j) Bought goods ₹50,000 from Rajesh, Delhi (CGST @ 9%, SGST @ 9%)

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Concept understanding — Purchase Journal Entry

Purchase Journal Entry – A First Look

Think of a shopkeeper who buys goods to sell. Every time they bring stock into the shop, something changes: the shop now has more goods, but it also owes money (or has paid cash). The purchase journal entry is simply the accountant’s way of recording that moment — the moment goods come in.

The Everyday Intuition

You walk into a stationery shop and buy 50 notebooks for ₹2,000. From the shop’s point of view, two things happen at once:

The shop gains notebooks (an asset).
The shop loses cash (another asset) or owes the supplier (a liability).

The purchase entry captures both sides of that single transaction. It is not about the sale to a customer — that comes later. This is the inward movement of goods meant for resale.

The Precise Meaning

In Accountancy, a Purchase Journal Entry records the credit purchase of goods (stock-in-trade) for resale in the normal course of business. If the purchase is for cash, it goes into the Cash Book, not the Purchase Journal. The Purchase Journal (also called the Purchase Book) is specifically for credit purchases of goods.

Important

Only goods bought for resale are recorded here. Buying a computer for office use, or buying raw materials for manufacturing, is not a “purchase” in this sense — those are asset purchases and go elsewhere.

Why It Matters

Without this entry, the business would not know:

How much stock it holds.
How much it owes to each supplier.
The true cost of goods sold when calculating profit.

The Purchase Journal is the first step in the trading account. If you get this entry wrong, the entire profit figure goes wrong.

Accounting Treatment – The Golden Rule

For a credit purchase of goods, the rule is:

Debit Purchases Account (increase in expenses/goods)

Credit Supplier’s Personal Account (increase in liability)

The logic: Purchases is a nominal account (expense), so an increase is debited. The supplier is a personal account — when we owe them, we credit.

Example

On 5th April, bought goods from Ramesh for ₹10,000 on credit.

Journal Entry:

Date	Particulars	Debit (₹)	Credit (₹)
2024 Apr 5	Purchases A/c Dr.	10,000
	To Ramesh A/c		10,000
	(Being goods bought on credit from Ramesh)

Note

The narration “Being goods bought on credit from Ramesh” is mandatory in the journal. It explains the transaction in plain words.

If It Were a Cash Purchase

If the same goods were bought for cash, the entry would be:

Date	Particulars	Debit (₹)	Credit (₹)
2024 Apr 5	Purchases A/c Dr.	10,000
	To Cash A/c		10,000
	(Being goods bought for cash)

Notice: the credit side changes from a personal account (Ramesh) to a real account (Cash). The debit remains the same because the nature of the transaction — gaining goods — is unchanged.

The Purchase Book Format (Proforma)

The Purchase Journal itself (the book of original entry) has a standard format. Each credit purchase is recorded here before being posted to the ledger.

Purchase Book (Journal) Format: …

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GST is charged intra-state as CGST + SGST and inter-state as IGST. Input GST on purchases/expenses is debited; Output GST on sales is credited.

Sample entries:

Ref	Particulars	Debit (₹)	Credit (₹)
(a)	Purchases 2,00,000; Input CGST 18,000; Input SGST 18,000 — To Kanta	2,36,000	2,36,000

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Where buyer and seller are in the same state (Delhi), GST splits into CGST + SGST; where they are in different states it is a single IGST. Tax paid on purchases/expenses is 'Input' GST (an asset, debited); tax collected on sales is 'Output' GST (a liability, credited).

Accounting treatment. On a purchase/expense, debit Purchases (or the asset/expense) plus the Input GST accounts, and credit the supplier/cash. On a sale, debit the customer/cash and credit Sales plus the Output GST accounts. Delhi-to-Delhi = CGST + SGST; across states = IGST.

Journal of Anudeep (Delhi)

Date	Particulars	Debit (₹)	Credit (₹)
(a)	Purchases A/c Dr.	2,00,000
	Input CGST A/c Dr.	18,000
	Input SGST A/c Dr.	18,000
	To Kanta		2,36,000
	(Goods bought from Kanta, Delhi; CGST & SGST @ 9%)
(b)	Purchases A/c Dr.	1,00,000
	Input IGST A/c Dr.	12,000
	To Cash A/c		1,12,000
	(Goods bought for cash from Rajasthan; IGST @ 12%)
(c)	Sudhir Dr.	1,77,000
	To Sales A/c		1,50,000
	To Output IGST A/c		27,000
	(Goods sold to Sudhir, Punjab; IGST @ 18%)
(d)	Railway Transport (Carriage) A/c Dr.	10,000
	Input CGST A/c Dr.	500
	Input SGST A/c Dr.	500
	To Cash A/c		11,000
	(Railway transport paid; CGST & SGST @ 5%)
(e)	Sidhu Dr.	1,41,600
	To Sales A/c		1,20,000
	To Output CGST A/c		10,800
	To Output SGST A/c		10,800
	(Goods sold to Sidhu, Delhi; CGST & SGST @ 9%)
(f)	Air Conditioner 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
	(Air-conditioner bought for office; CGST & SGST @ 9%)
(g)	Cash A/c Dr.	1,77,000
	To Sales A/c		1,50,000
	To Output IGST A/c		27,000
	(Goods sold for cash to Sunil, Uttar Pradesh; IGST @ 18%)
(h)	Motor Cycle A/c Dr.	50,000
	Input CGST A/c Dr.	7,000
	Input SGST A/c Dr.	7,000
	To Bank A/c		64,000
	(Motor cycle bought for business; CGST & SGST @ 14%)
(i)	Broadband Services A/c Dr.	4,000
	Input CGST A/c Dr.	360
	To Cash A/c		4,360
	(Broadband charges paid; CGST @ 9%, SGST @ 0%)
(j)	Purchases A/c Dr.	50,000
	Input CGST A/c Dr.	4,500
	Input SGST A/c Dr.	4,500
	To Rajesh		59,000

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

COHSEM Manipur Higher Secondary 1st Year (Commerce) 2023Set ANNUAL1 markMCQ

Q. In Inter-state supplies transactions, which form of 'GST' is levied as — (A) CGST (B) IGST (C) SGST (D) VAT

›Reveal solution

Inter-state supplies attract IGST (Integrated Goods and Services Tax).

GST in India has three components:

GST type	Levied on	Collected by
CGST	Intra-state (within the same state) supply	Central Government
SGST	Intra-state supply	State Government
IGST	Inter-state supply (between two different states)	Central Government (apportioned to the destination state)
…

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COHSEM Manipur Higher Secondary 1st Year (Commerce) 2022Set ANNUAL1 mark
$Q. From which account we get credit purchase ?$
›Reveal solutionSolution

We get the figure of credit purchases from the Purchases Book (also called the Purchases Journal).

Explanation: The Purchases Book is a special purpose subsidiary book in which only credit purchases of goods (goods meant for resale/trading, bought on credit) are recorded. Cash purchases of goods are not recorded here — they go through the Cash Book. Purchase of an asset (not meant for resale) on credit is also not recorded here — it is journalised directly. At the end of the period, the total of the Purchases Book is posted to the debit of the Purchases Account, and this p …

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COHSEM Manipur Higher Secondary 1st Year (Commerce) 2021Set ANNUAL1 mark
$Q. From which account we get credit purchase ?$
›Reveal solutionSolution

The total figure for credit purchases of goods (meant for resale) is obtained from the Purchases Book — a subsidiary book in which every credit purchase invoice is recorded as it arrives.

When a business buys goods on credit for resale, the transaction is recorded in the Purchases Book (also called the Purchases Journal or Purchases Day Book), based on the purchase invoice received from the supplier. Entries in this book are periodically totalled, and the total is posted to the debit of the Purchases Account in the ledger, while each individual supplier's account is credited with their respective amount. Only CASH purchases, and purchases of goods not meant for resale (e.g. purchase of a fixed asset) are exc …

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COHSEM Manipur Higher Secondary 1st Year (Commerce) 2020Set ANNUAL1 markMCQ
$Q. Goods given away as charity should be credited to —$
(a) Drawing Account
(b) Purchases Account
(c) Sales Account
(d) Charity Account
(a) Drawing Account
(b) Purchases Account
(c) Sales Account
(d) Charity Account
›Reveal solutionSolution

Goods given away as charity are credited to the Purchases Account (at cost). The correct option is (B) Purchases Account.

When goods are distributed as charity, they leave the business without any sale being made. Since these goods were originally recorded under Purchases, the value given away must be deducted from Purchases so that the cost of goods sold / gross profit is not overstated. The journal entry passed is:

Particulars Debit (₹) Credit (₹)
Charity A/c Dr. xxx
To Purchases A/c xxx

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Particulars	Debit (₹)	Credit (₹)
Charity A/c Dr.	xxx
To Purchases A/c		xxx

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Q.Posting Record journal entries for the following transactions in the books of Anudeep of Delhi:

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