Question 15.
(Transfer Entries). Give the Journal entries for the following:
(i) Gross Profit of ₹ 32,000 from Trading Account to Profit and Loss Account.
(ii) Net Profit of ₹ 14,500 to Capital Account of Sri Sankar Saha.
(iii) Sri Sankar Saha draws ₹ 10,000 from his Capital Account.
(iv) Purchases Return of ₹ 7,000 plus IGST @ 12%.
(v) Sales Return of ₹ 6,000 plus CGST and SGST @ 6% each.
Answers
The journal entry for the following is shown below:
Explanation:
1. Trading A/c..........................Dr $32,000
Profit and Loss A/c.............Cr $32,000
Transfer the gross profit to P&L A/c
2. Profit and Loss A/c...................... Dr $14,500
Sri Sankar Saha's Capital A/c......Cr $14,500
Transfer the net profit to Capital A/c
3. Sri Sankar Saha's Capital A/c.............Dr $10,000
Drawings A/c......................................Cr $10,000
Drawings or withdrawals made from capital A/c
4. Cash A/c................................Dr $7,840
Purchase Return A/c..........Cr $7,000
Input IGST A/c......................Cr $840
Record the purchase return of the goods
5. Sales Return A/c..............................Dr $6,000
Output CGST A/c..............................Dr $360
Output SGST A/c...............................Dr $360
Cash A/c...........................................Dr $6,720
Record the sales return of the goods
Working Note:
4. Input IGST = $7,000 × 12%
= $8440
5. Output CGST = $6,000 × 6%
= $360
Output SGST = $6,000 × 6%
= $360
hope it is helpful to you
