Question

Question 4.
Pass Journal entries of M/s. Bhanu Traders, Delhi from the following transactions. Post them to the Ledger:

Intra-state transactions are subject to levy of CGST and SGST @ 6% each whereas inter-state transactions are subject to levy of IGST @ 12%. Out of the above transactions marked (*) are not subject to levy of GST.

Answer 1

Answer:

Cash a/c dr

to capital a/c.

bank a/c dr

to cash a/c.

Answer 2

Journal Entries for the given Transactions with relevant Ledger Accounts

Explanation:

                                    In the Books of Bhanu Traders

Journal Entries:

• Cash A/c       Dr. Rs.1,50,000

            To Capital A/c       Rs.1,50,000

  (Being capital introduced into building)

• Bank A/c        Dr. Rs.50,000

            To Cash A/c             Rs.50,000

(Being a new bank account opened with PNB)

• Furniture A/c     Dr. Rs.20,000

       Input CGST A/c  Dr. Rs.1,200

       Input SGST A/c  Dr. Rs.1,200

               To Cash A/c         Rs.22,400

(Being Furniture purchased via cash and GST paid @6% each)

• Purchases A/c    Dr. Rs.30,000

       Input CGST A/c   Dr. Rs.1,800

       Input SGST A/c   Dr. Rs.1,800

              To Cash A/c              Rs.33,600

(Being goods purchased via cash and GST paid @6% each)

• Purchases A/c    Dr. Rs.42,000

       Input SGST A/c   Dr. Rs.5,040

             To M/s Hema Traders A/c    Rs.47,040

 (Being goods purchased on credit and IGST paid @12%)

• Cash A/c       Dr. Rs.33,600

             To CGST Payable A/c   Rs.1800

             To SGST Payable A/c   Rs.1800

             To Sales A/c                  Rs.30,000

(Being goods sold for cash and GST charged @6% each)

• M/s Gupta Traders A/c    Dr. Rs.13,440

               To IGST Payable A/c          Rs.1,440

               To Sales A/c                        Rs.12,000

(Being goods sold on credit and IGST charged @12%)

• Rent A/c       Dr. Rs.4,000

        Input CGST A/c  Dr. Rs.240

        Input SGST A/c   Dr. Rs.240

             To Cash A/c            Rs.4480

(Being rent paid and GST input credit claimed @6% each)

• Electricity expenses A/c      Dr. Rs.1,000

                    To Cash A/c                            Rs.1,000

(Being electricity expenses paid)

• Cash A/c         Dr. Rs.12,000

               To M/s Gupta Traders A/c    Rs.12,000

(Being payment received)

• Hema Traders A/c      Dr. Rs.2,240

               To Input IGST A/c          Rs.240

               To Purchase Returns A/c Rs.2000

 (Being goods returned to Hema Traders and IGST input credit reversed)

*Note: Value of Input credit IGST on return of goods worth Rs.2000 can be calculated as follows:

                $[\dfrac{2000}{42000} \times 5040]$ = Rs.240

• Hema Traders A/c      Dr. Rs.40,000

              To Cash A/c                      Rs.40,000

 (Being payment made to Hema Traders)

• Postage Stamps  A/c    Dr. Rs.100

                  To Cash A/c                   Rs.100

 (Being postage stamps purchased)

• Salary A/c           Dr. Rs.4,000

             To Cash A/c              Rs.4,000

(Being salary paid to Mohan)

Relevant Ledger A/cs:

1)                                                 Capital A/c

Particulars                Amount(Rs.)         Particulars            Amount(Rs.)  

To Balance c/d         1,50,000         By Cash A/c              1,50,000

                                                                                                                 

                                   1,50,000                                          1,50,000

                                                                                                                         

2)                                           Cash A/c

Particulars               Amount(Rs.)           Particulars            Amount(Rs.)                                              

To Sales                  30,000               By Bank A/c           50,000

To Capital A/c         1,50,000             By Furniture A/c     22400

To M/s Gupta           12000                By Purchases A/c   33600

                                                            By Rent A/c              4480

                                                            By Electricity             1000

                                                            By Hema traders      40,000

                                                            By Postage                 100

                                                            By Salary                    4000

                                                            By Balance c/d          36,200

                                                                                                                   

                              192000                                                     192000