Question

Question 8.
With Goods and Services Tax (GST)
Journalise the following transactions of Singh Enterprises, Delhi:

CGST and SGST @ 6% each is levied on Intra-state sale and purchase.

Answer 1

Journal Entries for the given transactions

Explanation:

                                       In the Books of Singh Enterprises

Journal Entries:

1.6.17                Cash A/c Dr.Rs.50,000

                               To Capital A/c  Rs.50,000

     (Being capital introduced into business)

2.6.17                 Bank A/c    Dr. Rs.2,00,000

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

      (Being money transferred to firm's account from Savings A/c)

3.6.17               Cash A/c      Dr.Rs.50,000

                                  To Ram A/c  Rs.50,000

     (Being cash received from Ram)

4.6.17              Purchases A/c     Dr. Rs.15,000

                      Input CGST A/c    Dr. Rs.900

                      Input SGST A/c     Dr. Rs.900

                            To Cash A/c               Rs.16800

  (Being goods purchases on cash and GST paid @6% each)

11.6.17            M/s Hari Sales A/c      Dr.Rs.13440

                          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 M/s Hari Sales on credit and GST charged @6% each)

13.6.17             Ramavatar A/c          Dr. Rs.40,000

                               To Cash A/c                Rs,40,000

          (Being payment made to Ramavatar)

17.6.17              Cash A/c         Dr. Rs.10,000

                              To M/s Hari Sales A/c       Rs.10,000

           (Being payment received from M/s Hari Sales)

20.6.17            Furniture A/c       Dr. Rs.20,000

                      Input CGST A/c     Dr. Rs.1200

                      Input SGST A/c     Dr. Rs.1200

                                 To Cash A/c                    Rs.22400

     (Being furniture purchased from S.R Furnishers against cash including GST @6% each)

* GST has been calculated as follows:

          Total GST charged = $22400 \times \dfrac{12}{112}$

                                           = Rs.2400

      CGST = $\dfrac{2400}{2}$ = Rs.1200

      SGST = $\dfrac{2400}{2}$ = Rs.1200

27.6.17         Rent A/c      Dr. Rs.28000

                    Input SGST A/c Dr. Rs.1680

                    Input CGST A/c  Dr.Rs.1680

                             To Cash A/c         Rs.31360

     (Being rent paid and GST input credit claimed)

30.6.17    Salary A/c        Dr. Rs.50,000

                     To Cash A/c              Rs.50,000

         (Being salary paid)