Recording of Transactions I Class 11: Journal, Ledger and GST Entries Solved

What Recording of Transactions - I is about

Weightage: This chapter is part of Unit 2, Accounting Process (Part A: Financial Accounting-I), which carries 44 of the 80 theory marks in the school annual exam together with Recording of Transactions - II, Bank Reconciliation Statement, Trial Balance and Rectification of Errors, Depreciation and Provisions and Reserves.Source: CBSE Accountancy (055) syllabus 2026-27, Class XI course structure, Unit 2 Accounting Process

Key concepts

Source documents and accounting vouchers

NCERT section 3.1

A source document is the original written evidence of a transaction: a cash memo for a cash sale, an invoice (bill) for a credit sale or purchase, a receipt for cash received, a pay-in-slip for a deposit, a cheque, a debit note or credit note for returns, a salary slip.

An accounting voucher is prepared by the accountant from the source document. It records which account is debited and which credited, the amount, the date and the narration, and is signed by the preparer and the person who authorises it. Vouchers are numbered serially and filed in date order; journal entries are made from them.

Types of vouchers:

• Cash voucher: for cash transactions (debit voucher for cash paid, credit voucher for cash received).
• Transfer (journal) voucher: for non-cash transactions, such as a credit sale or depreciation.
• Simple voucher: one debit and one credit; compound voucher: one debit with several credits or the reverse; complex voucher: several debits and several credits.

There is no fixed format, but a voucher must show: name of the firm, serial number, date, account codes and names, amount in figures, narration, and signatures of the preparer and the authoriser.

Worked example

Suppose Rhea Sports receives a cheque of ₹84,000 from Sharma Stores, allowing them ₹1,120 discount on a ₹85,120 debt. What type of voucher is prepared and what does it show?

Try it first, then show the solutionSolution

1. Two accounts are debited (Bank ₹84,000 and Discount Allowed ₹1,120) and one is credited (Sharma Stores ₹85,120)
2. One credit with several debits makes it a compound (debit) voucher

Answer: A compound voucher: Bank A/c Dr 84,000 and Discount Allowed A/c Dr 1,120, To Sharma Stores 85,120, with date, number, narration and signatures.

Accounting equation: meaning and analysis

NCERT section 3.2

The accounting equation follows from the dual aspect concept:

Assets = Liabilities + Capital, or Capital = Assets − Liabilities.

Every transaction changes at least two items so that the equation still holds. Revenues increase capital, and expenses, losses and drawings reduce it. So the extended form is:

Assets = Liabilities + (Capital + Revenue − Expenses − Drawings)

Four kinds of effect are possible:
1. Assets up, liabilities or capital up (start with cash; buy on credit).
2. Assets down, liabilities or capital down (pay a creditor; pay an expense; drawings).
3. One asset up, another asset down (buy furniture for cash).
4. One liability up, another down, or a liability turned into capital (rare at this level).

Below, Neha Bakers' balances are shown after each transaction. Notice that in every row total assets equal liabilities plus capital.

Transaction (balances after it)	Cash	Stock	Oven	Total assets	Creditors	Capital	Liabilities + Capital
1. Started business with cash ₹2,00,000	2,00,000	0	0	2,00,000	0	2,00,000	2,00,000
2. Bought an oven for ₹60,000 in cash	1,40,000	0	60,000	2,00,000	0	2,00,000	2,00,000
3. Bought flour on credit from Raj Mills ₹30,000	1,40,000	30,000	60,000	2,30,000	30,000	2,00,000	2,30,000
4. Sold goods costing ₹20,000 for ₹28,000 cash	1,68,000	10,000	60,000	2,38,000	30,000	2,08,000	2,38,000
5. Paid wages ₹5,000	1,63,000	10,000	60,000	2,33,000	30,000	2,03,000	2,33,000
6. Paid Raj Mills ₹18,000	1,45,000	10,000	60,000	2,15,000	12,000	2,03,000	2,15,000
7. Withdrew ₹4,000 for personal use	1,41,000	10,000	60,000	2,11,000	12,000	1,99,000	2,11,000

Worked example

Show the effect on the accounting equation: goods costing ₹20,000 are sold for ₹28,000 in cash.

Try it first, then show the solutionSolution

1. Cash (asset) rises by ₹28,000; stock (asset) falls by ₹20,000; net assets +₹8,000
2. The profit of ₹8,000 increases capital by ₹8,000
3. Assets +8,000 = Liabilities 0 + Capital +8,000

Answer: Assets up ₹8,000 and capital up ₹8,000; the equation balances.

Rules of debit and credit

NCERT section 3.3

Every account has two sides: the left is debit (Dr) and the right is credit (Cr). The rules come straight from the accounting equation:

Type of account	Increase	Decrease
Assets	Debit	Credit
Expenses and losses	Debit	Credit
Liabilities	Credit	Debit
Capital	Credit	Debit
Revenues and gains	Credit	Debit

Drawings reduce capital, so drawings are debited. Input GST is an amount the business can claim back, so Input CGST/SGST/IGST are debited (like assets); output GST is owed to the government, so Output CGST/SGST/IGST are credited (like liabilities).

To analyse any transaction: (1) name the two (or more) accounts, (2) classify each (asset, liability, capital, expense, revenue), (3) decide increase or decrease, (4) apply the rule. Total debits always equal total credits.

Worked example

Analyse: paid rent ₹12,000 by cheque.

Try it first, then show the solutionSolution

1. Accounts: Rent (expense) and Bank (asset)
2. Rent, an expense, increases: debit
3. Bank, an asset, decreases: credit

Answer: Rent A/c Dr 12,000; To Bank A/c 12,000.

The journal: format, simple and compound entries

NCERT section 3.4

The journal is the book of original (prime) entry: transactions are recorded in it first, in date order. Recording is called journalising. Its columns are:

Date	Particulars	L.F.	Debit (₹)	Credit (₹)

• The debited account is written first, followed by "Dr" at the end of the line.
• The credited account is written on the next line, set in a little, starting with "To".
• A narration in brackets explains the entry briefly.
• L.F. (ledger folio) is filled in when the entry is posted.

A simple entry has one debit and one credit. A compound entry has more than one debit or credit (for example, cash received from a debtor with discount allowed). Every GST purchase is a compound entry because the tax is debited separately.

Points to remember: trade discount is never recorded (enter the net price); cash discount is recorded as Discount Allowed (expense) or Discount Received (gain); freight or cartage on purchases is an expense debited to Freight (or Carriage Inwards) A/c, but freight paid to bring a fixed asset is added to the asset's cost; goods taken for personal use are recorded as Drawings A/c Dr, To Purchases A/c, at cost.

Worked example

Journalise: bought goods from Kapoor & Co. on credit, list price ₹1,00,000, trade discount 10%, GST 12% (intra-state).

Try it first, then show the solutionSolution

1. Net price = 1,00,000 − 10% = ₹90,000
2. CGST 6% = ₹5,400; SGST 6% = ₹5,400; amount payable = ₹1,00,800
3. Purchases A/c Dr 90,000; Input CGST A/c Dr 5,400; Input SGST A/c Dr 5,400; To Kapoor & Co. 1,00,800

Answer: A compound entry for ₹1,00,800; the trade discount is not recorded.

GST in journal entries: input tax, output tax and set-off

NCERT section 3.4

For a GST-registered trader:

• Purchases or expenses within the state: debit the purchase or expense, Input CGST A/c and Input SGST A/c; credit cash, bank or the supplier with the total.
• Purchases from another state: debit the purchase and Input IGST A/c.
• Sales within the state: debit cash, bank or the customer with the total; credit Sales, Output CGST A/c and Output SGST A/c.
• Sales to another state: credit Sales and Output IGST A/c.

At the end of the period the output tax is set off against input tax credit, and only the balance is paid:

Output CGST A/c Dr; To Input CGST A/c; To Bank A/c (balance paid)

(NCERT credits "Electronic Cash Ledger A/c" for the payment; crediting Bank is also accepted when the payment is made from the bank.)

Order of using credit: IGST credit is used first against IGST output, then against CGST, then SGST. CGST credit can be used against CGST and then IGST, and SGST credit against SGST and then IGST, but CGST credit can never pay SGST, nor SGST credit pay CGST.

Particulars	CGST (₹)	SGST (₹)	IGST (₹)
Output tax	30,000	30,000	20,000
Less: IGST credit (₹45,000) used	25,000	0	20,000
Less: CGST credit used	5,000	-	-
Less: SGST credit used	-	10,000	-
Payable in cash	Nil	20,000	Nil

Here the IGST credit of ₹45,000 clears the IGST output of ₹20,000 and ₹25,000 of CGST; CGST credit of ₹12,000 then covers the remaining ₹5,000 of CGST (₹7,000 is carried forward); SGST credit of ₹10,000 covers part of the SGST, leaving ₹20,000 to be paid.

Worked example

Suppose Arjun of Jaipur buys goods for ₹2,00,000 on credit from Mohan Bros. of Gujarat and sells goods for ₹1,50,000 on credit to Lalit Traders of Haryana. GST is 18%. Journalise.

Try it first, then show the solutionSolution

1. Both are inter-state, so IGST applies: on purchase ₹36,000, on sale ₹27,000

2. Date	Particulars	Dr (₹)	Cr (₹)
   (i)	Purchases A/c ... Dr	2,00,000
   	Input IGST A/c ... Dr	36,000
   	To Mohan Bros. (Gujarat)		2,36,000
   	(Goods bought on credit from Gujarat, IGST 18%)
   (ii)	Lalit Traders (Haryana) ... Dr	1,77,000
   	To Sales A/c		1,50,000
   	To Output IGST A/c		27,000
   	(Goods sold on credit to Haryana, IGST 18%)

Answer: Purchases ₹2,00,000 with Input IGST ₹36,000; sales ₹1,50,000 with Output IGST ₹27,000.

The ledger and classification of accounts

NCERT section 3.5

The ledger is the principal book of accounts: it has a separate account for every item (each asset, liability, revenue, expense, and each customer and supplier). It is called the book of final entry because the balances in it are used to prepare the trial balance and the financial statements.

Format of a ledger account (T-form):

Date	Particulars	J.F.	₹	Date	Particulars	J.F.	₹

The left side is debit (entries begin with "To") and the right side is credit (entries begin with "By"). J.F. is the journal folio, the page of the journal the entry came from.

Classification of ledger accounts:

• Permanent accounts: assets, liabilities and capital. They are balanced and carried forward to the next period and appear in the Balance Sheet.
• Temporary accounts: revenues and expenses. They are closed at the end of the period by transfer to the Trading and Profit and Loss Account.

Journal vs ledger: the journal records transactions in date order (chronological) and is the book of original entry; the ledger groups them account by account (analytical) and is the book of final entry. Only from the ledger can you tell how much is owed by a particular customer.

Worked example

Classify as permanent or temporary: Furniture, Sales, Capital, Rent, Creditors, Discount Received.

Try it first, then show the solutionSolution

1. Assets, liabilities and capital are permanent; revenues and expenses are temporary

Answer: Permanent: Furniture, Capital, Creditors. Temporary: Sales, Rent, Discount Received.

Posting from the journal and balancing an account

NCERT section 3.6

Posting means transferring each journal entry to the ledger accounts concerned.

1. Find the account debited in the journal. On its debit side write the date, "To [name of the account credited]", the J.F. and the amount.
2. Find the account credited. On its credit side write the date, "By [name of the account debited]", the J.F. and the amount.
3. Write the ledger page number in the L.F. column of the journal.

In a compound entry, each account on the single side is posted against every account on the other side, one line each.

Balancing: at the end of the period, total both sides. Write the difference on the lighter side as "By Balance c/d" (if debits are more) or "To Balance c/d" (if credits are more), so both totals are equal. Bring the balance down on the opposite side on the first day of the next period as "To Balance b/d" or "By Balance b/d". A debit balance means the account has more debits (assets, expenses, drawings); a credit balance means more credits (liabilities, capital, revenues). Nominal accounts are not balanced this way; they are closed to the Trading and Profit and Loss Account.

Suresh Account

Date	Particulars (Dr)	₹	Date	Particulars (Cr)	₹
Apr 1	To Balance b/d	12,000	Apr 12	By Cash A/c	30,000
Apr 3	To Sales A/c	45,000	Apr 20	By Sales Return A/c	5,000
Apr 25	To Sales A/c	18,000	Apr 30	By Balance c/d	40,000
	Total	75,000		Total	75,000

Suresh, a debtor, owes ₹40,000 at the end of April: a debit balance, brought down on 1st May as "To Balance b/d".

Worked example

The debit side of an account totals ₹72,000 and the credit side ₹51,500. How is it balanced and what does the balance mean if it is a customer's account?

Try it first, then show the solutionSolution

1. Difference = 72,000 − 51,500 = ₹20,500
2. Write "By Balance c/d 20,500" on the credit (lighter) side; both totals become ₹72,000
3. Bring down "To Balance b/d 20,500" on the debit side next period

Answer: A debit balance of ₹20,500: the customer owes the business ₹20,500.

Recording of Transactions - I in real life

Each concept, met in an everyday situation. Read the situation, answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Topics in this chapter

• Accounting Equation and Rules of Debit and Credit
• GST in Journal Entries: Input Tax, Output Tax and Set-off

Recording of Transactions - I: key facts

Accounting equation

Assets = Liabilities + Capital

Extended: Assets = Liabilities + Capital + Revenue − Expenses − Drawings.

Rules of debit and credit

Assets, expenses, losses, drawings: increase Dr, decrease Cr. Liabilities, capital, revenues, gains: increase Cr, decrease Dr.

Input GST behaves like an asset (Dr); output GST like a liability (Cr).

Invoice value with trade discount

Net price = List price × (1 − trade discount rate)

GST is charged on the net price.

GST within a state

CGST = SGST = (GST rate ÷ 2) × net price

Total payable = net price + CGST + SGST.

GST across states

IGST = GST rate × net price

Also on imports.

Cash discount on settlement

Discount = Amount due − Amount paid (or received) in full settlement

Seller records Discount Allowed (Dr); buyer records Discount Received (Cr).

GST payable

Net GST payable = Output tax − Input tax credit (used in the legal order)

CGST credit cannot pay SGST, and SGST credit cannot pay CGST.

Balance of an account

Balance c/d = Heavier side total − Lighter side total

Written on the lighter side; brought down on the opposite side.

How the school exam asks Recording of Transactions - I

The question patterns to expect, and the method that works for each.

Tricks to remember Recording of Transactions - I

Short memory aids. Say each one aloud once, then use it on a question the same day.

• DEAD CLIC

  Debit: Expenses, Assets, Drawings. Credit: Liabilities, Income, Capital (for increases).

  Use it when: Deciding debit or credit in any entry.

• To and By

  "To" on the left (debit) side, "By" on the right (credit) side, always followed by the OTHER account.

  Use it when: Ledger posting.

• GST direction

  Buy = Input = Dr; Sell = Output = Cr.

  Use it when: GST entries.

• Set-off order

  "I Clean Some": IGST credit goes to IGST, then CGST, then SGST; C and S never mix.

  Use it when: GST set-off questions.

Recording of Transactions - I: exam-level solved questions

Ordered from exam level to HOTS. Cover the solution, write your own, then compare step by step.

Case-study practice (Section E style)

Read the situation, then answer every part. In a school exam set on the board pattern this is a 4-mark question split into 1 + 1 + 2 marks.

Where the marks are

How a typical answer is split into step marks. Show every step: a right final answer alone rarely earns full marks.

Where students lose marks in Recording of Transactions - I

The slips examiners see most often, and what to write instead.

• ✗Mistake: Recording trade discount

  All discounts look like they should be recorded.

  Wrong working

  Mona Dr 50,000; To Sales 45,000; To Discount 5,000

  Right working

  Mona Dr 45,000; To Sales A/c 45,000

  ✓Do this: Only cash discount enters the books; trade discount is deducted before the entry.

  Usually costs: 1 mark per entry.

• ✗Mistake: Charging GST on the list price

  The list price is given first in the question.

  Wrong working

  List ₹1,00,000, TD 10%: CGST 6% of 1,00,000 = ₹6,000

  Right working

  CGST 6% of ₹90,000 = ₹5,400

  ✓Do this: Take trade discount first, then GST on the net price.

  Usually costs: 1-2 marks, and every later figure is wrong.

• ✗Mistake: Debiting Purchases for goods taken by the owner

  Goods are involved, so Purchases feels right.

  Wrong working

  Purchases A/c Dr 8,000; To Drawings A/c 8,000

  Right working

  Drawings A/c Dr 8,000; To Purchases A/c 8,000

  ✓Do this: Drawings increase (debit) and purchases decrease (credit), at cost price.

  Usually costs: 1 mark.

• ✗Mistake: Writing the account's own name in its ledger posting

  Copying the journal line.

  Wrong working

  In Cash A/c: "To Cash A/c 5,00,000"

  Right working

  In Cash A/c: "To Capital A/c 5,00,000"

  ✓Do this: In each ledger account, write the name of the other account in the entry.

  Usually costs: ½ mark per posting.

• ✗Mistake: Using CGST credit to pay SGST

  Both are "GST" and look interchangeable.

  ✓Do this: CGST credit pays only CGST (then IGST); SGST credit pays only SGST (then IGST). IGST credit goes to IGST, then CGST, then SGST.

  Usually costs: 1-2 marks in a set-off question.

• ✗Mistake: Treating freight on a machine as an expense

  Freight on goods is an expense.

  Wrong working

  Freight A/c Dr 4,000; To Cash 4,000 (for bringing a machine)

  Right working

  Machinery A/c Dr 4,000; To Cash A/c 4,000

  ✓Do this: Freight on goods for sale is an expense; freight to bring a fixed asset is part of its cost.

  Usually costs: 1 mark.

NCERT exercise guide: Recording of Transactions - I

What each exercise in the NCERT chapter tests, how to approach it, and a question of the same kind solved step by step. Questions here are written in our own words.

Practice questions on Recording of Transactions - I

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

1. Q1 · 1 mark · MCQExam level

   Discount received is:
   (a) an expense, debited
   (b) a gain, credited
   (c) an asset, debited
   (d) a liability, credited

   Hint

   It reduces what you pay.

   Answer

   (b) a gain, credited

2. Q2 · 1 mark · MCQExam level

   The book of original entry is the:
   (a) ledger
   (b) trial balance
   (c) journal
   (d) Balance Sheet

   Hint

   Transactions are first written here.

   Answer

   (c) journal

3. Q3 · 3 marks · Short answerExam level

   State whether the following accounts normally have a debit or credit balance: Capital, Drawings, Creditors, Purchases, Discount Allowed, Sales.

   Hint

   Use the five-category rules.

   Answer

   Credit: Capital, Creditors, Sales. Debit: Drawings, Purchases, Discount Allowed.

4. Q4 · 3 marks · Short answerExam level

   Distinguish between journal and ledger on three bases.

   Hint

   Order, nature, use.

   Answer

   Nature: book of original entry against book of final entry. Order: chronological (date) against analytical (account-wise). Use: shows each transaction in full against shows the net position of each account; the trial balance is prepared from the ledger.

5. Q5 · 3 marks · Short answerHarder exam level

   Suppose a Pune trader sells goods with a list price of ₹60,000 at 15% trade discount to a Pune customer on credit; GST 18%. The customer pays ₹59,000 in full settlement a week later. Journalise both transactions.

   Hint

   GST on the net price; discount on the total due.

   Answer

   Net ₹51,000; CGST ₹4,590; SGST ₹4,590; Customer Dr 60,180; To Sales 51,000; To Output CGST 4,590; To Output SGST 4,590. Then Cash/Bank Dr 59,000; Discount Allowed Dr 1,180; To Customer 60,180.

6. Q6 · 4 marks · Short answerHarder exam level

   Prepare an accounting equation: (i) Asha started business with cash ₹1,50,000 and furniture ₹30,000; (ii) bought goods on credit ₹40,000; (iii) sold goods costing ₹25,000 for ₹32,000 on credit; (iv) paid rent ₹6,000; (v) received ₹20,000 from the debtor.

   Hint

   Profit on the sale adds to capital.

   Answer

   End: cash 1,64,000; furniture 30,000; stock 15,000; debtors 12,000; total assets 2,21,000 = creditors 40,000 + capital 1,81,000 (1,80,000 + 7,000 − 6,000).

7. Q7 · 4 marks · Short answerHarder exam level

   Journalise for a Delhi trader (GST 12%): (a) bought goods ₹1,00,000 from Noida (Uttar Pradesh) on credit; (b) sold goods ₹70,000 in Delhi for cash; (c) paid telephone bill ₹5,000 plus GST locally by cheque.

   Hint

   Noida is in another state.

   Answer

   (a) Purchases Dr 1,00,000; Input IGST Dr 12,000; To Supplier 1,12,000. (b) Cash Dr 78,400; To Sales 70,000; To Output CGST 4,200; To Output SGST 4,200. (c) Telephone Dr 5,000; Input CGST Dr 300; Input SGST Dr 300; To Bank 5,600.

8. Q8 · 3 marks · Short answerHarder exam level

   For the Delhi trader in the previous question, find the GST payable in cash under each head.

   Hint

   IGST credit first to IGST (none), then CGST, then SGST.

   Answer

   IGST credit ₹12,000: CGST output ₹4,200 cleared, then SGST output ₹4,200 cleared; ₹3,600 IGST credit carried forward, plus CGST ₹300 and SGST ₹300 credit unused. Cash payable: nil.

9. Q9 · 3 marks · Short answerHarder exam level

   Suppose Ishaan's cash account for May shows receipts of ₹2,45,000 (including an opening balance of ₹25,000) and payments of ₹1,88,500. What is the balance, on which side is "Balance c/d" written, and on which side is it brought down?

   Hint

   Cash can only have a debit balance.

   Answer

   Balance ₹56,500; "By Balance c/d" on the credit side; brought down as "To Balance b/d" on the debit side on 1st June.

10. Q10 · 6 marks · Long answerHarder exam level

    Explain the rules of debit and credit using the accounting equation, with one example for each type of account.

    Hint

    Five categories.

    Answer

    Assets on the left of the equation increase by debit (bought furniture: Furniture Dr). Liabilities and capital on the right increase by credit (loan taken: Loan Cr; capital introduced: Capital Cr). Revenue increases capital, so it is credited (commission received: Commission Cr). Expenses and losses reduce capital, so they are debited (rent paid: Rent Dr). Decreases follow the opposite side.

11. Q11 · 4 marks · Short answerHOTS / competency

    Suppose a firm's journal has: Machinery A/c Dr 2,00,000; Input CGST A/c Dr 12,000; Input SGST A/c Dr 12,000; To Bank A/c 2,24,000. Write the transaction in words, show how it is posted to the Bank account, and explain why the GST is not added to the cost of the machine.

    Hint

    Who finally bears GST?

    Answer

    Machinery bought for ₹2,00,000 plus 12% GST (within the state) paid by cheque. Bank A/c credit side: "By Machinery A/c 2,00,000", "By Input CGST A/c 12,000", "By Input SGST A/c 12,000". The GST is recoverable as input tax credit against output tax, so it is not a cost to the business; adding it to the machine would overstate the asset.

12. Q12 · 4 marks · Long answerHOTS / competency

    Suppose the owner of a firm says, "We do not need a ledger; the journal already has every transaction." Give three reasons why the ledger is still needed, with an example.

    Hint

    What questions can only the ledger answer?

    Answer

    (1) The journal does not show the total effect on one account; only the ledger tells how much a customer owes (e.g. all entries for Suresh in one place). (2) Balances needed for the trial balance and final accounts come from the ledger. (3) Temporary accounts are closed and permanent accounts carried forward through the ledger, so the next year starts from the right balances.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1. 1.State the accounting equation.Show answer

   Assets = Liabilities + Capital.

2. 2.What is a compound journal entry?Show answer

   An entry with more than one debit or more than one credit.

3. 3.Is trade discount recorded in the journal?Show answer

   No; only the net amount is recorded.

4. 4.Which side of the ledger begins entries with "By"?Show answer

   The credit (right) side.

5. 5.Which GST is charged on a sale from Assam to Bihar?Show answer

   IGST.

6. 6.Is Input CGST debited or credited on a purchase?Show answer

   Debited.

7. 7.What does L.F. stand for in the journal?Show answer

   Ledger folio: the ledger page to which the entry is posted.

8. 8.Name two permanent ledger accounts.Show answer

   Any asset, liability or capital account, e.g. Furniture and Creditors.

9. 9.At what value are goods taken for personal use recorded?Show answer

   At cost price.

Quick revision checklist

The night before the exam: can you do each of these without looking?

• ☐Can you name five source documents and say what a voucher must contain?
• ☐Can you show the effect of any transaction on the accounting equation?
• ☐Can you state the debit-credit rule for each of the five account types?
• ☐Can you journalise a credit purchase with trade discount and GST?
• ☐Can you journalise a full settlement with cash discount on both sides?
• ☐Can you record goods taken for personal use and freight on a fixed asset?
• ☐Can you decide between CGST + SGST and IGST?
• ☐Can you set off output tax against input credit in the legal order?
• ☐Can you post a compound entry to the ledger correctly?
• ☐Can you balance an account and bring the balance down?

Recording of Transactions - I: frequently asked questions