Question No 02 Chapter No 8 – D.K Goal 11 Class

Question No 02 Chapter No 8

Purchase Book

2. M/s Ram Narain & Sons of Kerala, who are dealers in readymade garments, purchased the following :-

2017
May.5	Purchased from Fashion House, Mumbai Maharashtra:-
	100 Shirts @ 1,800 per Shirt
	75 T-shirts @ 1,600 per piece
	Less: Trade Discount 20%; and freight charges payable 10,000.
May.10	Purchased from Appolo Garments, Kerala:-
	65 Shirts @ 2,000 per piece
	80 T-shirts @ 1,500 per piece
	Less: 20% Trade Discount and freight charges payable 2,000.
May.15	Purchased from Garden Furniture House, Kolkata
	12 Chairs @ 5,000 per Chair
Jun.25	Purchased from Amitabh Shirts, New Delhi for cash:-
	120 Shirts @ 1,500 per Shirt

Prepare Purchase Book assuming CGST @ 9% and SGST @ 9%.

The solution of Question No 02 Chapter No 8: –

	Purchases Book
Date	Particular	Detail	Cost	Input CGST	Input SGST	Input ISGT	Total
2018 May
2	Fashion House, Mumbai Maharashtra
	100 Shirts @ Rs 1,800 per Shirt	1,80,000
	75 T-Shirts @ Rs 1,600 per piece	1,20,000
		3,00,000
	Less: Trade Discount @ 20 %	6,000
		2,40,000
	Add: 18% IGST	43,200
		2,83,200	2,40,000			43,200	2,83,200
10	Appolo Garments, Kerala
	65 Shirts @ Rs 2,000 per piece	1,30,000
	80 T-Shirts @ Rs 1,500 per piece	1,20,000
		2,50,000
	Less: Trade Discount @20%	50,000
		90,000
	Add: CGST	18,000
	Add: SGST	18,000
		2,36,000	2,00,000	18,000	18,000		2,36,000
			4,40,000	18,000	18,000	43,200	5,19,200

Working Note:-

1. In Purchases Book, we record only the credit purchase of goods, so transaction dated May 15 being the purchase of Furniture on credit and May 25 being the purchase of goods for cash will not be recorded

2. A separate entry will be passed in Journal Proper for Freight Charges payable on May 02, 2017, and May 10, 2017. Assuming GST rate is 18%, the following are the entries:

Date	Particulars		L.F.	Debit	Credit
May. 02	Freight Inwards A/c	Dr.		10,000
	Input IGST A/c	Dr.		1,800
	To Fashion House				11,800
	(Being Freight charge pointer−state purchase of goods @18)
May.10	Freight Inwards A/c	Dr.		2,000
	Input CGST A/c	Dr.		180
	Input SGST A/c	Dr.		180
	To Subhash’s A/c				2,360
	(Being Freight charge sonintra −statepurchaseofgoods@9)

 

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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

• Chapter 1 Evolution of Accounting & Basic Accounting Terms
• Chapter 2 Accounting Equations
• Chapter 3 Meaning and Objectives of Accounting
• Chapter 4 Double Entry System
• Chapter 5 Books of Original Entry – Journal 
• Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
• Chapter 7 Books of Original Entry – Cash Book (Coming soon)
• Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
• Chapter 9 Ledger (Coming soon)
• Chapter 10 Trial Balance and Errors (Coming soon)
• Chapter 11 Bank Reconciliation Statement (Coming soon)
• Chapter 12 Depreciation (Coming soon)
• Chapter 13 Bills of Exchange (Coming soon)
• Chapter 14 Generally Accepted Accounting Principles(GAAP) 
• Chapter 15 Bases of Accounting
• Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
• Chapter 17 Capital and Revenue 
• Chapter 18 Provisions and Reserves 
• Chapter 19 Final Accounts (Coming soon)
• Chapter 20 Final Accounts – With Adjustments (Coming soon)
• Chapter 21 Errors and their Rectification (Coming soon)
• Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
• Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
• Chapter 24 Computerised Accounting System (Coming soon)
• Chapter 25 Introduction to Accounting Information System (Coming soon)

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