Question

Purchased machinery of rs 80,000 @ 12% GST and amount paid by cheque. Do the entry of this journalise

Answer 1

Answer:

The journal entry of purchasing the machine is as:

Machinery A/c................Dr     Rs 80,000

Input CGST A/c...............Dr    Rs 4,800

Input SGST A/c................Dr    Rs 4,800

               To Creditor's Bank A/c..........Cr     Rs 89,600

Explanation:

Working Note:

GST = Cost of Machine * Rate

        = Rs 80,000 * 12%

         = Rs 9,600

The amount of GST is equally divided among the CGST and SGST.