Question

sold goods to krishna of delhi at the list price 20000 less trade discount 10% add cgst and sgst 6% eash and allowed cash discount 5% hepaid the amount immediaely

Answer 1

krishna A/c. dr. 19,152

Discount Allowed A/c. dr. 1008

to sales A/c. 18,000

to output CGST A/c. 1,080

to output SGST A/c. 1,080

calculations

Q:sold goods to krishna of delhi at the list price 20000 less trade discount 10%

therefore,

sales A/c. = 20,000 - 2000

= 18,000

CGST and SGST will be charged on this amount which is excluding the cash discount,

18,000 x 6/100

=1080

now cash discount will be charged on the amount including CGST and SGST, 18000+1080+1080 x 5/100

= 20160x5/100

= 1008,cash discount

thus amount to be debited from krishna A/c will be 20160 - 1008 = 19152

hope this helps you, always remember that in such type of questions trade discount is charged at first then CGST and SGST or igst is charged then sum all these amounts and charge cash discount on them.

thank you

Answer 2

Answer:

Krishna A/c.                                            dr.     19,152

Discount Allowed A/c.                           dr.      1008

                    To sales A/c.                                                 18,000

                    To output CGST A/c.                                        1,080

                    To output SGST A/c.                                          1,080

(Being goods sold to Krishna)

Explanation:

Working Note:-

Sold goods to Krishna of Delhi at the list price 20000 less trade discount 10%

Therefore,

Sales A/c. = 20,000 - 2000

                   => 18,000

∵CGST and SGST will be charged on this amount(18,000) which is excluding the cash discount,

        18,000 x 6/100

     =>1080

Now Cash discount will be charged on the amount including CGST and SGST

18000+1080+1080 x 5/100

 => 20160x5/100

 => 1008  Cash discount

Thus amount to be debited from Krishna A/c will be 20160 - 1008 = 19152

In such type of questions, trade discount is always calculated first then CGST and SGST or IGST is charged then all these amounts are added together and cash discount is calculated on them.

Now, a little insight about GST;

GST are of three types: CGST, SGST, and IGST. CGST is the Central Goods and Services Tax and is levied by the Central Government. SGST is the State Goods and Services Tax and is levied by the State Government.

The first type of GST is Central GST, which is imposed by the central government. This tax is applicable on all inter-state supplies of goods and services. The second type of GST is State Goods and Services Tax, which is levied by the state governments. This tax applies to intra-state supplies of goods and services.

The three types of GST in India are Central GST, State Goods and Services Tax, and Union Territory Goods and Services Tax.

GST are of three types: Central GST (CGST), State Goods and Services Tax (SGST), and Union Territory Goods and Services Tax (UTGST). CGST is levied by the Central Government on all intra-state supplies of goods and services. SGST is levied by the State Governments on all inter-state supplies of goods and These are just a few examples to get you thinking, but ultimately it's up to you to decide what goes in your blog post. Try to be creative, clear, and concise!

Central GST is imposed by the central government and applies to inter-state supplies of goods and services.

As the name suggests, Central Goods and Services Tax (CGST) is imposed by the central government on interstate supplies of goods and services. It is one of three types of taxes levied on GST registered businesses in India, along with State Goods and Services Tax (SGST) and Integrated Goods and Services Tax (IGST). CGST was introduced as part of the landmark Goods and Services Tax reform in 2017, which aimed to replace a plethora of indirect taxes with a single, nationwide tax.

State Goods and Services Tax is levied by the state governments and applies to intra-state supplies of goods and services.

GST, or the Goods and Services Tax, is a tax levied on the supply of goods and services in India. There are three types of GST: CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax). CGST is levied by the Central Government, while SGST is levied by State Governments. The State Goods and Service Tax applies to intra-state supplies of goods and services, that is, transactions taking place within a state.

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