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Subsidiary Books - Numerical Examples

Practice Problems & Solutions

Example 1: Purchase Book

Recording Credit Purchases with GST

Comprehensive Example

Question

From the following transactions of M/s Sharma Traders for January 2024, prepare Purchase Book (GST rate: CGST 9%, SGST 9% for local, IGST 18% for inter-state):

Jan 2: Purchased goods from Ram & Co. (Local) for ₹20,000 + GST (Invoice No. 234)
Jan 5: Bought merchandise from Shyam Enterprises (Local) ₹15,000 + GST, Trade Discount 10% (Invoice No. 456)
Jan 8: Credit purchase from Krishna Traders (Inter-state) ₹25,000 + GST (Invoice No. 789)
Jan 10: Purchased goods from Gopal & Sons (Local) for ₹12,000 + GST, Trade Discount 5% (Invoice No. 321)
Jan 12: Bought from Delhi Suppliers (Inter-state) ₹30,000 + GST (Invoice No. 654)
Jan 15: Credit purchase from Local Mart (Local) ₹8,000 + GST (Invoice No. 987)
Jan 18: Purchased from Mumbai Traders (Inter-state) ₹40,000 + GST, Trade Discount 15% (Invoice No. 111)
Jan 20: Bought goods from City Suppliers (Local) ₹18,000 + GST (Invoice No. 222)
Jan 25: Purchased from Gujarat Exporters (Inter-state) ₹22,000 + GST (Invoice No. 333)
Jan 28: Credit purchase from New Store (Local) ₹10,000 + GST, Trade Discount 8% (Invoice No. 444)

Important Points

  • Trade discount is deducted before calculating GST
  • Local purchases attract CGST + SGST (9% + 9% = 18%)
  • Inter-state purchases attract IGST (18%)
  • Only credit purchases of goods for resale are recorded
PURCHASE BOOK OF M/S SHARMA TRADERS
Date Particulars
(Name of Supplier)		 Invoice No. L.F. Details (₹) Purchases (₹) Input CGST (₹) Input SGST (₹) Input IGST (₹) Total (₹)
Jan 2 Ram & Co. 234 20,000 20,000 1,800 1,800 - 23,600
Jan 5 Shyam Enterprises 456 15,000
- 1,500
13,500		 13,500 1,215 1,215 - 15,930
Jan 8 Krishna Traders 789 25,000 25,000 - - 4,500 29,500
Jan 10 Gopal & Sons 321 12,000
- 600
11,400		 11,400 1,026 1,026 - 13,452
Jan 12 Delhi Suppliers 654 30,000 30,000 - - 5,400 35,400
Jan 15 Local Mart 987 8,000 8,000 720 720 - 9,440
Jan 18 Mumbai Traders 111 40,000
- 6,000
34,000		 34,000 - - 6,120 40,120
Jan 20 City Suppliers 222 18,000 18,000 1,620 1,620 - 21,240
Jan 25 Gujarat Exporters 333 22,000 22,000 - - 3,960 25,960
Jan 28 New Store 444 10,000
- 800
9,200		 9,200 828 828 - 10,856
Total 1,91,100 7,209 7,209 19,980 2,25,498

Example 2: Sales Book with GST

Recording Credit Sales with GST

Comprehensive Example

Question

Prepare Sales Book for February 2024 from the following credit sales transactions (GST rate: CGST 9%, SGST 9% for local, IGST 18% for inter-state):

Feb 1: Sold goods to ABC Ltd. (Local) for ₹25,000 + GST (Invoice No. 501)
Feb 3: Credit sales to XYZ Enterprises (Local) ₹18,000 + GST, Trade Discount 5% (Invoice No. 502)
Feb 5: Sold to Delhi Traders (Inter-state) ₹35,000 + GST (Invoice No. 503)
Feb 8: Sales to PQR & Co. (Local) ₹22,000 + GST, Trade Discount 10% (Invoice No. 504)
Feb 10: Sold goods to Mumbai Corp (Inter-state) ₹45,000 + GST (Invoice No. 505)
Feb 12: Credit sales to Local Store (Local) ₹15,000 + GST (Invoice No. 506)
Feb 15: Sold to Chennai Buyers (Inter-state) ₹28,000 + GST, Trade Discount 8% (Invoice No. 507)
Feb 18: Sales to City Mall (Local) ₹32,000 + GST (Invoice No. 508)
Feb 22: Sold goods to Kolkata Traders (Inter-state) ₹38,000 + GST (Invoice No. 509)
Feb 25: Credit sales to Metro Stores (Local) ₹20,000 + GST, Trade Discount 12% (Invoice No. 510)
SALES BOOK - FEBRUARY 2024
Date Particulars
(Name of Customer)		 Invoice No. L.F. Details (₹) Sales (₹) Output CGST (₹) Output SGST (₹) Output IGST (₹) Total (₹)
Feb 1 ABC Ltd. 501 25,000 25,000 2,250 2,250 - 29,500
Feb 3 XYZ Enterprises 502 18,000
- 900
17,100		 17,100 1,539 1,539 - 20,178
Feb 5 Delhi Traders 503 35,000 35,000 - - 6,300 41,300
Feb 8 PQR & Co. 504 22,000
- 2,200
19,800		 19,800 1,782 1,782 - 23,364
Feb 10 Mumbai Corp 505 45,000 45,000 - - 8,100 53,100
Feb 12 Local Store 506 15,000 15,000 1,350 1,350 - 17,700
Feb 15 Chennai Buyers 507 28,000
- 2,240
25,760		 25,760 - - 4,637 30,397
Feb 18 City Mall 508 32,000 32,000 2,880 2,880 - 37,760
Feb 22 Kolkata Traders 509 38,000 38,000 - - 6,840 44,840
Feb 25 Metro Stores 510 20,000
- 2,400
17,600		 17,600 1,584 1,584 - 20,768
Total 2,70,260 11,385 11,385 25,877 3,18,907

Example 3: Sales Return Book (Return Inward Book)

Recording Returns from Customers

With GST Adjustments

Question

Record the following sales returns in Sales Return Book for March 2024 (GST rates as applicable):

Mar 2: ABC Ltd. (Local) returned goods worth ₹3,000 + GST (Credit Note No. CN-101)
Mar 5: XYZ Enterprises (Local) returned defective items ₹2,500 + GST (CN-102)
Mar 8: Delhi Traders (Inter-state) returned excess goods ₹5,000 + GST (CN-103)
Mar 10: PQR & Co. (Local) returned damaged products ₹1,800 + GST (CN-104)
Mar 12: Mumbai Corp (Inter-state) returned wrong items ₹8,000 + GST (CN-105)
Mar 15: Local Store (Local) returned goods ₹3,500 + GST (CN-106)
Mar 18: Chennai Buyers (Inter-state) returned defective goods ₹6,200 + GST (CN-107)
Mar 20: City Mall (Local) returned excess quantity ₹4,000 + GST (CN-108)
Mar 22: Kolkata Traders (Inter-state) returned goods ₹7,500 + GST (CN-109)
Mar 25: Metro Stores (Local) returned damaged items ₹2,200 + GST (CN-110)
SALES RETURN BOOK (RETURN INWARD BOOK)
Date Particulars
(Name of Customer)		 Credit Note No. L.F. Details (₹) Sales Return (₹) Output CGST (₹) Output SGST (₹) Output IGST (₹) Total (₹)
Mar 2 ABC Ltd. CN-101 3,000 3,000 270 270 - 3,540
Mar 5 XYZ Enterprises CN-102 2,500 2,500 225 225 - 2,950
Mar 8 Delhi Traders CN-103 5,000 5,000 - - 900 5,900
Mar 10 PQR & Co. CN-104 1,800 1,800 162 162 - 2,124
Mar 12 Mumbai Corp CN-105 8,000 8,000 - - 1,440 9,440
Mar 15 Local Store CN-106 3,500 3,500 315 315 - 4,130
Mar 18 Chennai Buyers CN-107 6,200 6,200 - - 1,116 7,316
Mar 20 City Mall CN-108 4,000 4,000 360 360 - 4,720
Mar 22 Kolkata Traders CN-109 7,500 7,500 - - 1,350 8,850
Mar 25 Metro Stores CN-110 2,200 2,200 198 198 - 2,596
Total 43,700 1,530 1,530 4,806 51,566

Example 4: Purchase Return Book (Return Outward Book)

Recording Returns to Suppliers

With GST Adjustments

Question

Prepare Purchase Return Book from the following returns made in April 2024:

Apr 1: Returned defective goods to Ram & Co. (Local) worth ₹2,000 + GST (Debit Note No. DN-201)
Apr 4: Goods returned to Shyam Enterprises (Local) ₹1,500 + GST due to wrong specifications (DN-202)
Apr 6: Returned excess quantity to Krishna Traders (Inter-state) ₹4,000 + GST (DN-203)
Apr 8: Damaged goods returned to Gopal & Sons (Local) ₹800 + GST (DN-204)
Apr 10: Returned goods to Delhi Suppliers (Inter-state) ₹6,000 + GST (DN-205)
Apr 12: Wrong items returned to Local Mart (Local) ₹2,500 + GST (DN-206)
Apr 15: Returned defective goods to Mumbai Traders (Inter-state) ₹5,500 + GST (DN-207)
Apr 18: Excess goods returned to City Suppliers (Local) ₹3,200 + GST (DN-208)
Apr 20: Returned goods to Gujarat Exporters (Inter-state) ₹7,000 + GST (DN-209)
Apr 25: Damaged items returned to New Store (Local) ₹1,800 + GST (DN-210)
PURCHASE RETURN BOOK (RETURN OUTWARD BOOK)
Date Particulars
(Name of Supplier)		 Debit Note No. L.F. Details (₹) Purchase Return (₹) Input CGST (₹) Input SGST (₹) Input IGST (₹) Total (₹)
Apr 1 Ram & Co. DN-201 2,000 2,000 180 180 - 2,360
Apr 4 Shyam Enterprises DN-202 1,500 1,500 135 135 - 1,770
Apr 6 Krishna Traders DN-203 4,000 4,000 - - 720 4,720
Apr 8 Gopal & Sons DN-204 800 800 72 72 - 944
Apr 10 Delhi Suppliers DN-205 6,000 6,000 - - 1,080 7,080
Apr 12 Local Mart DN-206 2,500 2,500 225 225 - 2,950
Apr 15 Mumbai Traders DN-207 5,500 5,500 - - 990 6,490
Apr 18 City Suppliers DN-208 3,200 3,200 288 288 - 3,776
Apr 20 Gujarat Exporters DN-209 7,000 7,000 - - 1,260 8,260
Apr 25 New Store DN-210 1,800 1,800 162 162 - 2,124
Total 34,300 1,062 1,062 4,050 40,474

Example 5: Journal Proper Entries

Transactions for Journal Proper

Mixed Transactions

Question

Pass journal entries for the following transactions in May 2024:

May 1: Started business with: Cash ₹1,00,000, Furniture ₹50,000, Bank ₹2,00,000
May 3: Purchased machinery from Tech Solutions for ₹1,50,000 on credit
May 5: Sold old furniture to Office Mart for ₹15,000 on credit
May 8: Goods worth ₹8,000 withdrawn by proprietor for personal use
May 10: Bad debts written off from Rahul (debtor) ₹5,000
May 12: Received commission ₹10,000 in advance
May 15: Depreciation charged on machinery @ 10% p.a. for the month
May 18: Interest on capital to be provided @ 12% p.a. for the month
May 20: Rent outstanding for the month ₹15,000
May 25: Goods distributed as free samples ₹3,000
JOURNAL PROPER
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
May 1 Cash A/c     Dr. 1,00,000
Furniture A/c     Dr. 50,000
Bank A/c     Dr. 2,00,000
    To Capital A/c
(Being business started with capital)		 3,50,000
May 3 Machinery A/c     Dr. 1,50,000
    To Tech Solutions A/c
(Being machinery purchased on credit)		 1,50,000
May 5 Office Mart A/c     Dr. 15,000
    To Furniture A/c
(Being old furniture sold on credit)		 15,000
May 8 Drawings A/c     Dr. 8,000
    To Purchases A/c
(Being goods withdrawn for personal use)		 8,000
May 10 Bad Debts A/c     Dr. 5,000
    To Rahul A/c
(Being bad debts written off)		 5,000
May 12 Cash/Bank A/c     Dr. 10,000
    To Unearned Commission A/c
(Being commission received in advance)		 10,000
May 15 Depreciation A/c     Dr. 1,250
    To Machinery A/c
(Being depreciation for the month: 1,50,000 × 10% × 1/12)		 1,250
May 18 Interest on Capital A/c     Dr. 3,500
    To Capital A/c
(Being interest on capital: 3,50,000 × 12% × 1/12)		 3,500
May 20 Rent A/c     Dr. 15,000
    To Outstanding Rent A/c
(Being rent outstanding for the month)		 15,000
May 25 Advertisement A/c     Dr. 3,000
    To Purchases A/c
(Being goods distributed as free samples)		 3,000

Comprehensive Practice Problem

Problem for Practice

Instructions: From the following transactions for June 2024, identify and record entries in appropriate subsidiary books:

Jun 1: Credit purchase from A & Co. (Local) ₹30,000 + GST, Trade Discount 10%
Jun 3: Sold goods to B Ltd. (Inter-state) on credit ₹40,000 + GST
Jun 5: Cash sales ₹20,000 + GST (Not for subsidiary books)
Jun 7: Returned goods to A & Co. ₹3,000 + GST (from Jun 1 purchase)
Jun 9: B Ltd. returned goods ₹4,000 + GST
Jun 11: Purchased computer on credit from Tech World ₹60,000
Jun 13: Credit purchase from C Traders (Inter-state) ₹25,000 + GST
Jun 15: Sold old furniture to D & Sons on credit ₹12,000
Jun 17: Credit sales to E Enterprises (Local) ₹35,000 + GST, Trade Discount 5%
Jun 20: Goods taken by proprietor for personal use ₹5,000

Hints for Solution

  • Purchase Book: Jun 1 (₹27,000 + GST), Jun 13 (₹25,000 + GST)
  • Sales Book: Jun 3 (₹40,000 + GST), Jun 17 (₹33,250 + GST)
  • Purchase Return Book: Jun 7 (₹3,000 + GST)
  • Sales Return Book: Jun 9 (₹4,000 + GST)
  • Journal Proper: Jun 11 (Computer purchase), Jun 15 (Furniture sale), Jun 20 (Drawings)
  • Remember: Cash transactions go to Cash Book (not shown here)

Numerical MCQs

1. If goods worth ₹50,000 are purchased with trade discount of 20%, the amount to be recorded in Purchase Book is:

2. Sales Book shows total of ₹75,000. The journal entry will be:

3. Purchase Return Book total is ₹12,000. The effect on Purchase A/c will be:

4. If Sales Return Book shows ₹8,000, the Sundry Debtors account will be:

5. Goods costing ₹30,000 sold at 25% profit on credit. Amount in Sales Book:

6. Purchase Book total ₹1,00,000 includes GST @ 18%. The net purchase amount is:

7. Credit purchase ₹40,000, returns ₹5,000. Net amount payable to creditor:

8. Sales ₹60,000, Sales Returns ₹8,000. Net Sales amount is:

9. Furniture purchased for ₹25,000 on credit will be recorded in:

10. Monthly totals: Purchase Book ₹80,000, Purchase Returns ₹10,000, Sales Book ₹1,20,000, Sales Returns ₹15,000. Gross Profit is:

11. A business pays ₹5,000 as office rent. Which book will record this?

12. Credit sales ₹20,000 recorded in Sales Book, but ₹500 returned. Net entry in Sales Book is:

13. Goods worth ₹15,000 purchased on credit from Ram. Which book is used?

14. Payment of ₹1,000 to a creditor is recorded in:

15. Petty cash payment of ₹200 for stationery is recorded in:

16. Goods returned to a supplier ₹3,000. Entry recorded in:

17. A business receives ₹5,000 from a debtor. Which book will record it?

18. Furniture purchased ₹20,000, paid later. Initial record is in:

19. A business sells goods on credit ₹10,000. Which book records this?

20. Monthly totals: Purchases ₹50,000, Purchase Returns ₹5,000, Sales ₹1,00,000, Sales Returns ₹10,000. Net Purchase and Net Sales are: