Question 9.
A sold goods to B for ₹ 20,000 plus CGST and SGST @ 9% each on credit 3 months. B paid A ₹ 3,600 by cheque and accepted a draft for the balance amount. The draft was endorsed in favour of C, who got the payment on maturity.
Give Journal entries in the books of A.
Answers
The journal entries in the books of A are shown below:
Explanation:
The journal entries in the books of A are as:
B's A/c....................................Dr Rs23,600
To Sales A/c........................Cr Rs 20,000
To Output CGST A/c...........Cr Rs 1,800
To Output SGST A/c.............Cr Rs 1,800
Being goods sold plus CGST and SGST
Bills Receivable A/c.......................Dr Rs 20,000
Bank A/c.............................................Dr Rs 3,600
To B's A/c......................................Cr Rs 23,600
Being B's accepted the bill
C's A/c.....................................Dr Rs 20,000
To Bills Receivable A/c......Cr Rs 20,000
Being accepted the bill and endorsed to C
Working Note:
CGST Amount = Amount × 9%
= Rs 20,000 × 9%
= Rs 1,800
SGST Amount = Amount × 9%
= Rs 20,000 × 9%
= Rs 1,800