Pass entries in the book of Devdhar Charging CGST and SGST 9% 2018 March4 purchased goods for 500000 form Sunil Bros
Answers
Purchase A/c. Dr 500000
Input CGST A/c Dr 45000
Input SGST A/c. Dr 45000
To sunil bros . 590000
Thanks
Mark as brainliest .
3 golden rules
• debit the receiver , credit the giver
• debit what comes in , credit what goes out
• debit all the expenses and losses , credit all the incomes and gains
--------------------------------------------------------------------------------------------------------------
reason for debit and credit
Purchases A/c - nominal A/c - where its the expenses to the company therefore its debited
Sunil Bros A/c - personal A/c , here the supplier is giver of the goods therefore its credited
CGST & SGST - Its debited
----------------------------------------------------------------------------------------------------------------
Journal entry
Purchases A/c Dr 500000
CGST A/c Dr 45000
SGST A/c Dr 45000
To Sunil Bros A/c 590000
(being credit purchases made )
* it has been assumed that purchase is exclusive of tax