Question

pass necessary adjustment entries for the following entries. ​

Answer 1

Answer:

a) Drawings A/C Dr. 5,900

To Purchase A/C 5,000

To Input IGST A/C 900

b) Cash A/C Dr. 20,178

Discount A/C Dr. 1,062

To Sales A/C 18,000

To Output CGST A/C 1,620

To Output SGST A/C 1,620

c) Closing Stock A/C Dr. 20,000

To Trading A/C 20,000

Explanation:

Working Note :-

b) Sale price = List price(20,000) - T.D. (10% of L.P. i.e., 2,000) = 18,000

S.P. + CGST + SGST = 21,240

Cash Discount = 5% of 21,240 = 1,062

Cash received = 21,240 - 1,062 = 20,178

Cash = L.P. - T.D. + GST - C.D.