Question

goods were given away as charity ₹500 these were purchased on paying CGST and SGST @6% each. What will be the journal entry​

Answer 1

Answer:

charity a/c dr. 560

to purchase a/c 500

+6percent cgst. 30

+6percent sgst. 30

Explanation:

it's a easy concept that that we give goods as a charity show the goods we have purchased will be deducted from our capital that is assets so it will be on credit side and because it is going on and the charity accounts to the cash Charity account which is in debit side so it will be increased and the Purchase we have done so we will include the GST as well so we will add GST in the purchase that means it is in credit side so it will be Input cgst and input sgst which is 30 rupees so it will be 560 rupees so in both we will write 560 rupees

I hope you understand the concept ........