Question

enter the transaction in the journal of mr ram . a sum previously written off as bad debt now recovered CGST & SGST @9% each is to be levied on intra state transaction - 2500

pls give me the answer asap
tyvm..

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Answer 1

Journal entries in the books of Mr.Ram

First of all when the cheque was in bad debt,the entry will be:

Bad debt a/c. dr.2500

to Ram. 2500

(being bad debts)

Now when the bad debts recovered,the entry will be(with GST),

Cash a/c dr.2950

to output cgst a/c. 225

to output sgst a/c. 225

to bad debts recovered a/c. 2500

(Being bad debts recovered with GST)

Hopes it will be help you