Question

Purchase goods from ram of delhi rs.50000,igst paid@12%

Answer 1

Purchases A/C.  Dr.  Rs.50,000 Input IGST A/C.   Rs.6,000    To Ram A/C. Rs.56,000 (Being goods from Ram @ IGST of 12%)

Answer 2

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

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reason for debit and credit

Purchases A/c - real A/c , goods comes to the business , therefore its debited

IGST A/c - nominal a/c , its the expense to the company therefore its debited

RAm A/c - personal /c , hes the giver of the goods , hes the creditor to us , therefore its credited

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Journal entry

Purchases A/c  Dr   50000

IGST A/c           Dr      6000

           To Ram A/c                   56000

(being purchased goods )

*note IGST = 50000*12%

                  =6000

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