Question

Paid for food and beverages Rs. 8000 plus 2.5% cgst and 2% sgst for meeting with creditors ?

Answer 1

Answer:

Journal entry

Meeting expenses  A/c  Dr   8000

CGST @ 2.5  A/c              Dr     200

SGST @2.5% A/c              Dr     200

            To cash / bank A/c                              8400

(Being food and beverages purchased for the meeting with creditors )

           

NoTE

alternatively Instead of business promotion or food and beverages A/c can be debited as the suitable nature of account .

If its paid by cash then credited to cash A/c

If its paid through chequq or demand draft then credited to Bank A/c

Answer 2

your journal entry will be:

meeting expenses a/c. Dr. 8000

CGST a/c. Dr. 200

SGST a/c. Dr. 160

to cash a/c. 8360

(Being cash paid for meeting expenses on cash)