Question

Paid insurance 12000 plus cgst sgstt 6% each

Answer 1

Answer:

Journal entry

Insurance A/c   Dr  12000

CGST A/c           Dr     720

SGST A/c            Dr     720

      To Cash or bank A/c            13440

(being insurance paid)

Explanation:

Insurance - nominal account , where its expenses o the company therefore its debited .

CGST A/c  and SGST a/c - nominal account , where again its expense to the company , where its collected from buyer and pay to government therefore its debited

Answer 2

your journal entry will be:

insurance premium a/c. Dr. 12000

SGST a/c. Dr 720

CGST a/c. Dr 720

to bank a/c. 13440

(paid insurance premium by Bank)