Question

Question 5.
Journalise the following transactions in the Journal of M/s. Gupta Brothers (Prop. Shri R. K. Gupta), Delhi and post them to the Ledger:

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).

Answer 1

Answer:

capital ac dr. 200000

To cash

Answer 2

Journal Entries for the given transactions

Explanation:

                                     In the Books of M/s Gupta and Bros.

Journal Entries:

1.3.18   Cash A/c  Dr. Rs.2,00,000

                   To Capital A/c      Rs.2,00,000

  (Being capital introduced into business)

2.3.18   Bank A/c    Dr. Rs.80,000

                To Cash A/c     Rs.80,000

(Being Bank account opened in SBI)

4.3.18    Purchases A/c  Dr. Rs.22000

             Input IGST A/c  Dr. Rs.2640

                  To Raj A/c              Rs.24640

  (Being goods purchased on credit from Raj and IGST paid)

5.3.18     Purchases A/c    Dr. Rs.30,000

              Input CGST A/c  Dr. Rs.1800

              Input SGST A/c   Dr. Rs.1800

                     To Cash A/c           Rs.33,600

  (Being goods purchased against cash and GST paid)

8.3.18     Naman A/c    Dr. Rs.14160

                 To CGST Payable A/c    Rs.720

                 To SGST Payable A/c     Rs.720

                 To Sales A/c                    Rs.12,000

 (Being goods sold to Naman on credit and GST charged)

10.3.18    Raj A/c         Dr.Rs.22,000

                     To Cash A/c    Rs.22,000

(Being cash payment made to Raj)

15.3.18   Cash A/c    Dr. Rs.11,700

             Discount Allowed A/c   Dr.Rs.300

                    To Naman A/c                      Rs.12,000

           (Being payment received from debtor Naman and discount allowed)

16.3.18    Wages A/c     Dr. Rs.200

                  To Cash A/c             Rs.200

       (Being wages paid)

18.3.18      Furniture A/c     Dr. Rs. 5000

                Input CGST A/c  Dr. Rs.300

                Input SGST A/c   Dr. Rs.300

                        To Cash A/c              Rs.5600

(Being furniture purchased and GST paid)

20.3.18     Drawings A/c      Dr. Rs.4000

                      To Bank A/c           Rs,4000

 (Being cash withdrawn from bank for personal use)

22.3.18   Rent A/c       Dr. 3000

              Input CGST A/c Dr. Rs.180

              Input SGST A/c  Dr. Rs.180

                      To Cash A/c       Rs.3360

(Being rent paid along with GST)

*It has been assumed that rent was being paid for the office building or office premises,therefore,GST paid on rent can be claimed as Input credit.

23.3.18     Drawings A/c      Dr. Rs.2240

                      To Purchases A/c     Rs.2000

                      To Input IGST A/c      Rs.240

 (Being goods taken for household purpose and IGST claimed previously reversed)

24.3.18     Cash A/c      Dr. Rs.6000

                        To Bank A/c                  Rs.6,000

         (Being cash withdrawn from bank for office use)

26.3.18      Cash A/c    Dr. Rs.1,000

                            To Commission received  Rs.1,000

       (Being commission received)

27.3.18       Bank Charges A/c    Dr. Rs.300

                       To Bank A/c                       Rs,300

    (Being bank charges paid)

28.3.18  *No entry for issuance of cheque for payment of Insurance premium of proprietor.

29.3.18       Salary A/c   Dr. Rs.10,000

                          To Cash A/c        Rs.10,000

      (Being salary paid)

30.3.18     Cash A/c      Dr. Rs.22400

                   To CGST Payable A/c    Rs.1200

                   To SGST Payable A/c     Rs.1200

                   To Sales A/c                    Rs.20000

   (Being cash sales made and GST charged)