GST

Q.2 Pass entries in the books of Mukul Roy & Sons, assuming all transactions have been entered within the state of West Bengal, charging CGST and SGST @ 6% each :

1. Purchased goods for Rs. 1,50,000 from S. Banerjee.

2. Sold goods for Rs.2,50,000 to Adilya Sangma.

3. Returned goods to S. Banerjee for Rs. 10,000.

4. Aditya Sangma returned goods for Rs.8,000.

5. Printing & stationery expenses of Rs.5,000 paid in cash.

6. Goods withdrawn by Proprietor for personal use Rs.20,000.

7. Goods destroyed by fire Rs. 15,000.

8. Payment made of balance amount of GST.

Answer :

Total Input CGST :  = Rs. 6,600

Total Input SGST : = Rs.6,600

Total Output CGST : = Rs.14,520

Total Output SGST : = Rs.14,520

Q. 3 Enter the following transactions in the books of Luxmi traders assuming that all transactions have taken place in the state of Rajasthan. Assume COST @9% and SGST @9%:

1. Purchased goods for 5,00,000 from Chauban Traders, at 20% Trade discount.

2. Sold goods to Pushkar Bros, for Rs.3,20,000.

3. Received from Pushkar Bros, a cheque for Rs.2,00,000 on account. Cheque is sent to bank.

4. Purchased furniture for Rs.50,000 and payment made by cheque.

5. Advertisement.charges of Rs.20,000 paid by cheque.

6. Sold goods for Rs. 1,00,000 and received a cheque for the same. Cheque is sent to bank.

7. Commission of Rs. 10,000 received in cash.

8. Output GST adjusted against Input GST.

Answer :-

Total Input COST     : Rs.36,000 + Rs.4,500 + Rs. 1,800 = Rs.42,300

Total Input SGST     : Rs.36,000 + Rs.4,500 + Rs. 1,800 = Rs.42,300

Total Output CGST  : Rs.28,800 + Rs.9,000 + Rs.900 = Rs.38,700

Total Output SGST  : Rs.28,800 + Rs.9,000 + Rs.900 = Rs.38,700

Q.4 Journalise the following transactions in the books of Kaveri Traders, Bengaluru :

1. Purchased goods from Nagendra & Sons, of Belgaum of the list price of Rs. 1,25,000 at 20% trade discount and 5% cash discount on purchase price of goods. Paid CGST and SGST @6% each. Payment was made immediately by cheque.

2. Sold to Arvind Patil & Co. Hubli goods of the list price of Rs.4,00,000 at 25% trade discount and 3% cash discount on sale price. Charged CGST and SGST @6% each. Full payment received by cheque at the time of sale itself.

3. Sold to Bangarappa & Bros of Mysuru goods of the list price of Rs.2,50,000 at 20% trade discount and 4% cash discount on sale price. Charged CGST and SGST @ 6% each. 80% of the amount received by cheque immediately.

4. Payment made of balance amount of GST.

Answer :-

Output CGST A/c 30,000

Output SGST A/c   30,000

Input CGST A/c :     6,000

Input SGST A/c:       6,000

Q .5  Record the following transactions in the books of Ravi & Co., Lucknow assuming all transactions have been entered within the State of Uttar Pradesh, Charging CGST and SGST @ 6% each.

1. Started business with Cash Rs.50,000 and Cheque of Rs.4,00,000.

2. Bought goods of the list price of Rs. 1,00,000 from Gopal Bros, less 20% trade discount and 5% Cash discount on purchase price. 60% of the amount was paid immediately by cheque.

3. Sold goods to Manoj & Co. of the list price of Rs.2,00,000 less 15% trade discount and 4% Cash discount on sale price and received 40% by cheque.

4. Paid to Gauri Shankar Rs.95,000 by Cheque after deducting 5% Cash discount.

5. Electricity expenses paid by Cheque for office Rs.20,000 and for residence of Proprietor Rs. 10,000.

6. Paid salaries by Cheque Rs.25,000.

7. Dinanath, a debtor for Rs.40,000 has become bankrupt and 25% is received from his estate by Cheque.

8. Withdrew from bank Rs.60,000 for office use and Rs.20,000 for personal use.

9. Received by Cheque for a bad debt written off last year Rs. 10,000.

10. Sold goods costing Rs.60,000 to Kishore against Cheque at a profit of 25% on cost less 10% trade discount. Cash discount allowed @, 2% on sale price.

Answer :-

To Output CGST A/c :- 4,050

To Output SGST A/c :- 4,050

(Inter-State i.e., from one State to another)

Q.6 Pass entries in the books of Mr. Gopal assuming CGST @6% and SGST @6% :

1. Gopal purchased goods for Rs.1,50,000 from outside the State and made payment by cheque.

2. He sold goods for Rs. 1,00,000 outside the State on Credit.

3. He sold goods for Rs. 1,80,000 locally on credit.

4. Paid telephone bill for Rs.5,000 by cheque.

5. He purchased an air-conditioner for his office for Rs.25,000 and paid the amount by cheque.

6. Payment made of balance amount of GST.

Answer :-

Input IGST :- Rs. 18,000

Output IGST :-Rs. 12,000

Input CGST  :- Rs. 1,800

Output CGST:-Rs. 10,800

Input SGST :-Rs. 1,800

Output SGST:-Rs. 10,800

Q.7  Pass entries in the books of Sh. Gopi Chand of Kerala assuming CGST @9% and SGST @9% :

1. Purchased goods for Rs.3,00,000 from Karuna Karan of Chennai (Tamilnadu).

2. Purchased goods for Rs.50,000 from Ganeshan of Ernakulam (Kerala).

3. Sold goods costing Rs.80,000 to Naidu of Hyderabad (Telangana) at a profit of 25% on cost less trade discount 10%.

4. Sold goods at Kottayam (Kerala) costing Rs.2,50,000 at 60% profit less trade discount 15% against cheque which was deposited into bank.

5. Advertisement charges of Rs.8,000 paid in cash.

6. Purchased a Computer for office use for Rs.30,000 and payment made by cheque.

7. Proprietor withdrew Rs. 10,000 for his personal use.

8. Payment made of balance amount of GST.

Q.8 Pass entries in the books of Deepak of Gujarat for the following transactions:

1. Purchased goods from Anupriya of Gujarat for Rs.2,50,000. (CGST @9% and SGST @9%)

2. Purchased goods from Rana Rathore of Rajasthan for Rs.3,00,000.(Igst @12%)

3. Sold goods to Gurdeep Sidhu of Gujarat for Rs.2,00,000. (CGST @ 9% and SGST @ 9%)

4. Paid railway freight Rs. 15,000. (CGST @9% and SGST @9%)

5. Purchased Computer Printer for office for Rs.80,000 from Del! Ltd. on credit. (CGST @6% and SGST @6%)

6. Sold goods to Ganga Ram of U.P. goods for Rs.4,20,000 against cheque which is deposited into the bank. (IGST @18%)

7. Paid for Broad-band services Rs. 10,000 by Cheque. (CGST @6%, SGST @6%) 

8. Payment made of balance amount of GST.29,250

Q.9 Pass entries in the books of all parties in the following cases assuming CGST @9% and SGST @9%. 

1. Goods sold by a manufacturer Ankit of Maharashtra to a dealer Brijesh of Maharashtra for Rs.50,000.

2. Goods sold by Brijesh to Chandra of Gujarat for Rs. 1,20,000.

3. Goods sold by Chandra to Dinesh of Gujarat for Rs. 1,50,000.

4. Goods sold by Dinesh to Ekta of Rajasthan costing Rs. 1,50,000 at a profit of 33.33% on cost.

PRACTICAL QUESTIONS

Q. 10. Pass entries in the books of Mukerjee & Sons, assuming all transactions have taken place within the state of Uttar Pradesh. Assume CGST @9% and SGST @9%.

March 4:-Purchased goods for Rs.5,00,000 from Mehta Bros.

March 10:-Sold goods for Rs.8,00,000 to Munjal & Co.

March 15:-Paid for advertisement Rs.40,000 by cheque.

March 18:-Purchased furniture for office use Rs. 50,000 and payment made by cheque.

March 25:-Paid for printing and stationery Rs.8,000.

March 31:-Payment made of balance amount of GST.

[Ans. Total Rs. 17,93,640. Net amount paid Rs.36,360.]

Q.11. Pass entries in the books of Devdhar & Bros. Odisha, assuming all transactions have been entered within the state, charging CGST and SGST @ 9% each:

2018

March 4:-Purchased goods for Rs.5,00,000 from Sunil Bros.

Goods returned to Sunil Bros, for Rs.20,000

Sold goods to Mehta & Co. for Rs.8,00,000

Goods returned by Mehta & Co. for Rs.30,000

Goods withdrawn by Proprietor for personal use Rs. 10,000

Goods distributed as free samples Rs.5,000

Paid advertisement expenses by cheque Rs.20,000

Payment made of balance amount of GST.

[Ans. Total Rs. 17,72,900; Net amount paid Rs.51,300]

Q. 12. Pass entries in the books of Ganguli & Sons, assuming all transactions have been entered in the state of West Bengal :

(i)  Purchased goods for Rs.2,00,000 and payment made by cheque.

(ii) Sold goods for Rs. 1,60,000 to Devki Nandan & Sons.

(iii) Purchased goods for Rs. 50,000 on credit.

(iv) Paid for printing and stationery Rs.4,000.

(v)  Received for commission Rs.5,000.

(vi) Output GST adjusted against Input GST.

Assume CGST @6% and SGST @6%.

[Ans. Total Rs.4,89,080; Input CGST and Input SGST Rs. 15,240 each. Output CGST and Output SGST Rs.9,900 each. Input Tax Credit: CGST Rs.5,340 and SGST Rs.5,340.]

Q. 13. Pass entries for the following transactions in the books of M/s Karthikeyan & Co. of Chennai : 2019

1. Purchased goods from Ravichandran of Madurai of the list price of Rs.2,00,000 at 25% trade discount at 4% cash discount on purchase price of goods. Paid CGST and SGST @9% each. Paid the entire amount by cheque on the same date. June 25

2. Sold goods to Ramalingam of Erode of the list price of Rs.3,75,000 at 20% trade discount and 2% cash discount on sale price. Charged CGST and SGST @9% each. Full amount was received by cheque on the same date.

Ignore adjustment and payment of GST.

[Ans. Total Rs.5,31,000;

Q. 14. Record the following transactions in the books of Sahdev & Sons assuming all transactions have been entered within the state of Bihar, Charging CGST and SGST @ 9% each.

(i) Bought goods from Nanak Bros, for Rs.4,00,000 at 10% trade discount and 3% cash discount on purchase price. 25% of the amount paid at the time of purchase.

(ii) Sold goods to Kumar & Sons, for Rs.2,00,000 at 20% trade discount and 5% cash discount on sale price. 60% of the amount received by Cheque.

(iii) Received from Gopi Chand Rs.38,000 by Cheque after deducting 5% cash discount.

(iv) Paid Rs.20,000 for rent by Cheque.

(v) Paid Rs.50,000 for salaries by Cheque.

(vi)  Goods worth Rs. 10,000 distributed as free samples.

(vii)  Rs. 5,000 due from Chandrakant are bad-debts.

(viii) Sold household furniture for Rs. 15,000 and the proceeds were invested into business.

Ignore adjustment of GST.

[Ans. Total Rs.7,59,000]

Q. 15: Pass entries in the books of Mr. Roopani of Gujarat assuming CGST @9% and SGST @9%.

(i) Purchased goods for Rs. 2,00,000 from Suryakant of Jaipur (Rajasthan) on Credit.

(ii) Sold goods for Rs. 1,50,000 to Mr. Pawar of Mumbai (Maharashtra) and the cheque received was sent to bank.

(iii) Sold goods for Rs.2,50,000 within the state on credit.

(iv) Paid insurance premium of 20,000 by cheque.

(v) Purchased furniture for office for Rs.60,000 by cheque.

(vi) Payment made of balance amount of GST.

[Ans. Total Rs.8,74,400]

Q. 16, Pass entries in the books of Sh. Jagdish Mishra of Lucknow (U.P.) assuming CGST @6% and SGST @6% : 2018

March 5 Purchased goods for Rs.2,50,000 from Virender Yadav of Patna (Bihar).

March 12 Sold goods costing Rs.60,000 at 50% profit to Partap Sinha of Ranchi (Jharkhand).

March 14 Purchased goods for Rs.70,000 from Ram Nath of Kanpur (U.P.) against cheque.

March 18 Sold goods at Varanasi (U.P.) Costing Rs.2,25,000 at 33.5% profit less trade discount 10% against cheque which was deposited into bank.

March 20 Paid rent Rs.25,000 by cheque.

March 31 Payment made of balance amount of GST.

[Ans, Total Rs.8,32,800]

Q. 17. Pass entries in the books of Krishnan of Bengaluru (Karnataka) in the following cases :

I Purchased goods from Karuna Karan of Chennai for Rs. 1,00,000. (IGST @18%)

II Sold goods to Ganeshan of Bengaluru for Rs. 1,50,000. (CGST @6% and SGST @6%)

III Sold goods to S. Nair of Kerala for Rs.2,60,000. (IGST @18%)

IV Purchased Machinery for Rs.80,000 from Surya Ltd. against cheque. (CGST @9% and SGST @9%)

V Paid rent Rs.30,000 by cheque. (CGST @6% and SGST @6%)

VI Purchased goods from Ram Mohan Rai of Bengaluru for Rs.2,00,000. (CGST @6% and SGST @6%)

VII Paid insurance premium Rs. 10,000 by cheque. (CGST @9% and SGST @9%)

VIII Received commission Rs.20,000 by cheque which is deposited into bank. (CGST @9% and SGST @9%)

IX Payment made of balance amount of GST.

[Ans. Total Rs. 10,48,600]