Question

Sold goods of RS. 5000 plus IGST @ 12% to Ram of Chandigarh on credit

Answer 1

Journal Entry

Ram    Dr  Rs.5600

      To Output IGST  A/C  Dr   Rs.600

      To Sales A/C                      Rs.5000

(being goods sold to Ram)

Explanation :

IGST = 12%(5000) = Rs.600 is the Tax colleted on sales which is required to be deposited with the government. Therefore, it is output IGST which is a liability . Hence, credited.

We sold goods to Ram on credit . So,Ram is our debtor. Hence Ram is debited.

Answer 2

Hey mate ✌️✌️


Journal Entry ⏬⏬⏬⏬



Ram ..........................................Dr....5600
......To sales A/c...5000
...To Output IGST..600


(Being the goods sold to Ram , charged@12percent.)