Question

purchased goods through V. P. ​

Answer 1

Answer:

Journal entry of purchasing goods without including GST :

Purchases A/c_Dr (1,00,000)

Cartage A/c_Dr (2,000)

To Cash A/c (1,02,000)

(Being received a V.P.P. from Ramesh and sent a peon to collect it who paid ₹2,000 as cartage)

Reason : Purchases Account is debited because it increases the balance of Purchases(Expenses) Account, Cartage Account is debited because it increases the balance of Cartage(Expenses) Account and Cash Account is credited because it decreases the balance of Cash(Assets) Account.

Journal Entry of Purchasing goods with GST :

I assume it is a Intra-State Transaction @ 9% CGST and SGST each and journal entry is made accordingly :

Purchases A/c_Dr (1,00,000)

Input CGST A/c_Dr (9,000)

Input SGST A/c_Dr (9,000)

Cartage A/c_Dr (2,000)

To Cash A/c (1,20,000)

(Being received a V.P.P. from Ramesh, sent a peon to collect it who paid ₹2,000 as cartage plus CGST and SGST @ 9% each )

Reason: Purchases Account is debited because it increases the balance of Purchases(Expenses) Account, Input CGST Account is debited because it increases the balance of Input CGST(Assets) Account, Input SGST Account is debited because it increases the balance of Input SGST(Assets) Account, Cartage Account is debited because it increases the balance of Cartage(Purchases) Account and Cash Account is credited because it decreases the balance of Cash(Assets) Account.

Note : V.P.P. stands for Value Payable Post. Under this system a seller sends the goods through the medium of post office. A buyer have to pay the value of these goods and gets the delivery of these goods from post office.