Question 14.
Record the following transactions in the Journal of Ashoka Furniture Traders, Ludhiana (Punjab):
CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase.
Answers
Answer:
What do you mean.....its to big....the state sale will be 6%
Journal Entries for the given transactions
Explanation:
In The Books of Ashoka Furniture Traders
Journal Entries:
1.1.18 Cash A/c Dr. Rs.50,000
To Capital A/c Dr. Rs. 50,000
(Being capital introduced in business)
2.1.18 Bank A/c Dr. Rs.3,50,000
To Cash A/c Rs.3,50,000
(Being Cash transferred to bank for current A/c)
10.1.18 Machinery A/c Dr.Rs. 1,00,000
Input CGST A/c Dr. Rs.6,000
Input SGST A/c Dr. Rs.6,000
To Bank A/c Rs.1,12,000
(Being Machinery Purchased and GST paid)
15.1.18 Wages A/c Dr. Rs.2,000
To Cash A/c Rs.2,000
(Being Wages paid)
20.1.18 Purchases A/c Dr.Rs.18,000
Input CGST A/c Dr. Rs.1080
Input SGST A/c Dr. Rs.1080
To M/s Singh & Co. Rs.20,160
(Being Timber purchased on credit and GST applied @6% each)
25.1.18 Furniture A/c Dr. Rs.5000
To Purchases A/c Rs.5000
(Being Timber used for office furnishing)
31.1.18 Rakesh A/c Dr. Rs.10,080
To CGST Payable A/c Rs.540
To SGST Payable A/c Rs.540
To Sales A/c Rs.9,000
(Being timber sold on credit to Rakesh and GST charged @6% each)
10.2.18 M/s Singh & Co. A/c Dr. Rs.20,160
To Bank A/c Rs.20,160
(Being payment made to creditor in full settlement)
15.2.18 Cash A/c Dr. Rs.10,220
To Rakesh A/c Rs.10,220
(Being amount due from Rakesh received in full settlement)
20.2.18 Wages A/c Dr. Rs.15,000
To Cash A/c Rs.15,000
(Being Wages Paid)
28.2.18 Rent A/c Dr. Rs.5,000
To Bank A/c Rs.5,000
(Being Rent paid via cheque)