Question 12.
Journalise the following transactions of Satish, Noida (UP):
CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase.
![](https://hi-static.z-dn.net/files/d5f/4655f83510c25f35a6524965b0ff8238.png)
Answers
Journal Entries for the given transactions
Explanation:
In the books of Satish
- Cash A/c Dr. Rs.40,000
To Capital A/c Rs.40,000
(Being Capital introduced into business)
- Bank A/c Dr. Rs.60,000
To Cash A/c Rs.60,000
(Being cash transferred to bank to open savings A/c)
- Purchases A/c Dr. Rs.20000
Input IGST A/c Dr. Rs. 2400
To M/s Singh & Co. Rs.22400
(Being goods purchased on credit and IGST Paid)
- Bank A/c Dr. Rs.5,000
To Capital A/c Rs.5,000
(Being additional capital introduced via cheque)
- Computer A/c Dr. Rs.15000
Input CGST A/c Dr. Rs.900
Input SGST A/c Dr. Rs.900
To Bank A/c Rs.16800
(Being Computer purchased and GST Paid)
- Postage A/c Dr. Rs.150
To Cash A/c Rs.150
(Being Postage paid)
- Cash A/c Dr. Rs.4480
To CGST Payable A/c Rs.240
To SGST Payable A/c Rs. 240
To Sales A/c Rs.4000
(Being goods sold for cash and GST charged)
- M/s Sharda & Co. A/c Dr. Rs.11200
To IGST Payable A/c Rs.1200
To Sales A/c Rs.10,000
(Being goods sold to M/s Sharda and IGST charged)
- M/s Singh & Co. A/c Dr. Rs.19500
To Discount allowed A/c Rs.500
To Cash A/c Rs.19000
(Being payment made to M/s Singh & Co. and discount received)
- M/s Ray & Co. A/c Dr. Rs.6272
To IGST Payable A/c Rs.672
To Sales A/c Rs.5600
(Being goods sold to M/s Ray & Co. and IGST charged)
- Bank A/c Dr. Rs.9750
Discount Allowed A/c Dr. Rs.1450
To M/s Sharda & Co. Rs.11200
(Being payment received from M/s Sharda in full settlement)
- Electricity A/c Dr. Rs.1000
Rent A/c Dr. Rs.2500
Drawings A/c Dr. Rs.3500
To Cash A/c Rs.7000
(Being Expenses incurred and drawings made)