Accountancy, asked by ipooja19, 4 months ago

Input CGST and SGST - 7740
Output CGST and SGST- 6500
What will be it's journal entry , leadger a/c and treatment in trading and p&l a/c also treatment in balance sheet.

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Answers

Answered by shreyanshupattajoshi
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Example 1: Intra-state

Mr. X purchased goods Rs. 1,00,000 locally (intrastate)

He sold them for Rs. 1,50,000 in the same state

He paid legal consultation fees Rs. 5,000

He purchased furniture for his office for Rs. 12,000

Assuming CGST @8% and SGST@8%

The entries will be-

1 Purchase A/c ………………Dr. 1,00,000

Input CGST A/c ……………Dr. 8,000

Input SGST A/c ……… …Dr. 8,000

To Creditors A/c

1,16,000

2 Debtors A/c ………………Dr. 1,74,000

To Sales A/c 1,50,000

To Output CGST A/c 12,000

To Output SGST A/c 12,000

3 Legal fees A/c ………..……Dr. 5,000

Input CGST A/c ……………Dr. 400

Input SGST A/c ……………Dr. 400

To Bank A/c 5,800

4 Furniture A/c ………..……Dr. 12,000

Input CGST A/c ……………Dr. 960

Input SGST A/c ……………Dr. 960

To ABC Furniture Shop A/c 13,920

Total Input CGST=8,000+400+960= Rs. 9,360

Total Input SGST=8,000+400+960= Rs. 9,360

Total output CGST=12,000

Total output SGST=12,000

Therefore Net CGST payable=12,000-9,360=2,640

Net SGST payable=12,000-9,360=2,640

5 Output CGST A/c ……………Dr. 12,000

Output SGST A/c ……………Dr. 12,000

To Input CGST A/c 9,360

To Input SGST A/c 9,360

To Electronic Cash Ledger A/c 5,280

Thus due to input tax credit, tax liability of Rs. 24,000 is reduced to only Rs.5,280. Also, GST on legal fees can be used for set off against the GST payable on goods sold, which was not possible in current tax regime.

If there had been any input tax credit left it would have been carried forward to the next year.

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