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Prepare journal entries for the following transactions: (i) Bought goods for ₹ 5,000 plus CGST and SGST @ 6% each. (ii) Sold goods to Mehtab for ₹ 50,000, charged CGST and SGST @ 6% each.

Accounting

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Here are the journal entries for the given transactions:

Journal Entries

Part i· 2 steps

Bought goods for ₹ 5,000 plus CGST and SGST @ 6% each.

  1. Calculate CGST and SGST.

    CGST = 6%6\% of ₹ 5,000=6100×5,000=₹ 3005,000 = \frac{6}{100} \times 5,000 = \text{₹ } 300
    SGST = 6%6\% of ₹ 5,000=6100×5,000=₹ 3005,000 = \frac{6}{100} \times 5,000 = \text{₹ } 300
    Total amount payable = ₹ 5,000+300+300=₹ 5,6005,000 + 300 + 300 = \text{₹ } 5,600

  2. Pass the journal entry.

    DateParticularsDebit (₹)Credit (₹)Purchases A/c5,000Input CGST A/c300Input SGST A/c300To Cash/Bank A/c (or Creditors A/c)5,600(Being goods purchased with CGST and SGST)\begin{array}{|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Debit (₹)} & \textbf{Credit (₹)} \\ \hline & \text{Purchases A/c} & 5,000 & \\ & \text{Input CGST A/c} & 300 & \\ & \text{Input SGST A/c} & 300 & \\ & \quad \text{To Cash/Bank A/c (or Creditors A/c)} & & 5,600 \\ & \text{(Being goods purchased with CGST and SGST)} & & \\ \hline \end{array}

Part ii· 2 steps

Sold goods to Mehtab for ₹ 50,000, charged CGST and SGST @ 6% each.

  1. Calculate CGST and SGST.

    CGST = 6%6\% of ₹ 50,000=6100×50,000=₹ 3,00050,000 = \frac{6}{100} \times 50,000 = \text{₹ } 3,000
    SGST = 6%6\% of ₹ 50,000=6100×50,000=₹ 3,00050,000 = \frac{6}{100} \times 50,000 = \text{₹ } 3,000
    Total amount receivable from Mehtab = ₹ 50,000+3,000+3,000=₹ 56,00050,000 + 3,000 + 3,000 = \text{₹ } 56,000

  2. Pass the journal entry.

    DateParticularsDebit (₹)Credit (₹)Mehtab A/c56,000To Sales A/c50,000To Output CGST A/c3,000To Output SGST A/c3,000(Being goods sold to Mehtab with CGST and SGST)\begin{array}{|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Debit (₹)} & \textbf{Credit (₹)} \\ \hline & \text{Mehtab A/c} & 56,000 & \\ & \quad \text{To Sales A/c} & & 50,000 \\ & \quad \text{To Output CGST A/c} & & 3,000 \\ & \quad \text{To Output SGST A/c} & & 3,000 \\ & \text{(Being goods sold to Mehtab with CGST and SGST)} & & \\ \hline \end{array}

Part iii· 2 steps

Sold goods to Arpana for ₹ 60,000 against cheque, charged IGST @ 12%.

  1. Calculate IGST.

    IGST = 12%12\% of ₹ 60,000=12100×60,000=₹ 7,20060,000 = \frac{12}{100} \times 60,000 = \text{₹ } 7,200
    Total amount received by cheque = ₹ 60,000+7,200=₹ 67,20060,000 + 7,200 = \text{₹ } 67,200

  2. Pass the journal entry.

    DateParticularsDebit (₹)Credit (₹)Bank A/c67,200To Sales A/c60,000To Output IGST A/c7,200(Being goods sold to Arpana, payment received by cheque, with IGST)\begin{array}{|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Debit (₹)} & \textbf{Credit (₹)} \\ \hline & \text{Bank A/c} & 67,200 & \\ & \quad \text{To Sales A/c} & & 60,000 \\ & \quad \text{To Output IGST A/c} & & 7,200 \\ & \text{(Being goods sold to Arpana, payment received by cheque, with IGST)} & & \\ \hline \end{array}

Part iv· 2 steps

Computer purchased by Atul & Co., Delhi for office use from HP Ltd., Greater Noida (UP) for ₹ 50,000 plus IGST @ 12%, payment made by cheque.

  1. Calculate IGST.

    IGST = 12%12\% of ₹ 50,000=12100×50,000=₹ 6,00050,000 = \frac{12}{100} \times 50,000 = \text{₹ } 6,000
    Total amount paid by cheque = ₹ 50,000+6,000=₹ 56,00050,000 + 6,000 = \text{₹ } 56,000
    (This is an inter-state purchase, hence IGST applies).

  2. Pass the journal entry.

    DateParticularsDebit (₹)Credit (₹)Computer A/c50,000Input IGST A/c6,000To Bank A/c56,000(Being computer purchased for office use with IGST, payment by cheque)\begin{array}{|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Debit (₹)} & \textbf{Credit (₹)} \\ \hline & \text{Computer A/c} & 50,000 & \\ & \text{Input IGST A/c} & 6,000 & \\ & \quad \text{To Bank A/c} & & 56,000 \\ & \text{(Being computer purchased for office use with IGST, payment by cheque)} & & \\ \hline \end{array}

Part v· 2 steps

Paid Telephone bill of ₹ 5,000 plus CGST and SGST @ 6% each.

  1. Calculate CGST and SGST.

    CGST = 6%6\% of ₹ 5,000=6100×5,000=₹ 3005,000 = \frac{6}{100} \times 5,000 = \text{₹ } 300
    SGST = 6%6\% of ₹ 5,000=6100×5,000=₹ 3005,000 = \frac{6}{100} \times 5,000 = \text{₹ } 300
    Total amount paid = ₹ 5,000+300+300=₹ 5,6005,000 + 300 + 300 = \text{₹ } 5,600

  2. Pass the journal entry.

    DateParticularsDebit (₹)Credit (₹)Telephone Expenses A/c5,000Input CGST A/c300Input SGST A/c300To Cash/Bank A/c5,600(Being telephone bill paid with CGST and SGST)\begin{array}{|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Debit (₹)} & \textbf{Credit (₹)} \\ \hline & \text{Telephone Expenses A/c} & 5,000 & \\ & \text{Input CGST A/c} & 300 & \\ & \text{Input SGST A/c} & 300 & \\ & \quad \text{To Cash/Bank A/c} & & 5,600 \\ & \text{(Being telephone bill paid with CGST and SGST)} & & \\ \hline \end{array}

Part vi· 2 steps

Goods that were purchased paying CGST and SGST @ 6% each costing ₹ 1,000 given as charity.

  1. Calculate the input CGST and SGST to be reversed.

    Input CGST = 6%6\% of ₹ 1,000=6100×1,000=₹ 601,000 = \frac{6}{100} \times 1,000 = \text{₹ } 60
    Input SGST = 6%6\% of ₹ 1,000=6100×1,000=₹ 601,000 = \frac{6}{100} \times 1,000 = \text{₹ } 60

  2. Pass the journal entry.

    DateParticularsDebit (₹)Credit (₹)Charity A/c1,000To Purchases A/c1,000To Input CGST A/c60To Input SGST A/c60(Being goods given as charity and input GST reversed)\begin{array}{|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Debit (₹)} & \textbf{Credit (₹)} \\ \hline & \text{Charity A/c} & 1,000 & \\ & \quad \text{To Purchases A/c} & & 1,000 \\ & \quad \text{To Input CGST A/c} & & 60 \\ & \quad \text{To Input SGST A/c} & & 60 \\ & \text{(Being goods given as charity and input GST reversed)} & & \\ \hline \end{array}
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