Question

Pass necessary adjustment entries for the following transactions:- a) Withdrawn goods for personal use (Cost Rs. 5,000 + IGST@18%; Sale Price Rs. 7,000) b) Sold goods to Kiran of Delhi at the list price Rs. 20.000 less trade discount 10% add CGST and SGST @ 9% each., and allowed cash discount @5%. He paid amount immediately. c) Closing Stock amounted to Rs.20,000

Answer 1

Answer:

Pass necessary adjustment entries for the following transactions:- a) Withdrawn goods for personal use (Cost Rs. 5,000 + IGST@18%; Sale Price Rs. 7,000) b) Sold goods to Kiran of Delhi at the list price Rs. 20.000 less trade discount 10% add CGST and SGST @ 9% each., and allowed cash discount @5%. He paid amount immediately. c) Closing Stock amounted to Rs.20,000⏩⏪⏪⏪⏪

Answer 2

The journal entries are shown below:

Explanation:

The journal entries are as:

a.

Drawings A/c.........................Dr  Rs 5,900

        To Purchases A/c.............Cr  Rs 5,000

         To IGST A/c.......................Cr  Rs 900

Being withdrawal for the goods is recorded

b.

Cash A/c.............................Dr  Rs 19,240

Discount A/c.......................Dr  Rs 2,000

    To Sales A/c..........................Cr  Rs 18,000

    To Output CGST A/c.............Cr  Rs 1,620

    To Output SGST A/c..............Cr  Rs 1,620

Being goods sold to Kiran

c.

Closing Stock A/c.........................Dr  Rs 20,000

      To Trading A/c............................Cr   Rs 20,000

Being amounts transferred to trading account

Working Note:

a.

IGST = Amount × 18%

= Rs 5,000  × 18%

= Rs 900

b.

Amount = List price - Discount

= Rs 20,000 - Rs 20,000 × 10%

= Rs 20,000 - Rs 2,000

= Rs 18,000

Output CGST = Amount  × 9%

= Rs 18,000  × 9%

= Rs 1,620

Output IGST = Amount  × 9%

= Rs 18,000  × 9%

= Rs 1,620

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