Question

8.Pass necessary journal entry for the following transaction, assuming CGST @6% and SGST @6%, "Paid legal fees Rs. 5000"
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Answer 1

Answer:

Legal fees 5000 contains 12% gst charges

Find out the basic fees amount before Gst charges 100/112*5000 = 4464

Gst - CGST - 6% = 6/100*4464 =267.84 or 268 , so SGST 6% = 268

Explanation:

So the journal entry :

Legal fees a/c 4464

CGST a/c 268

SGST a/s 268

To Bank / Cash a/c 5000

(Being legal fees paid along gst charges)