We have discussed Journal entries (with GST ) earlier let us now discuss Journal entries

with GST taking illustrations.

1. Transactions of Ramesh of Delhi for April, 2019 are given below.

2019
April 1 Ramesh started business and bought capital in cash 100000
April 2 Paid into bank 70000
April 3 Bought goods for Rs. 5000 plus SGST and CGST @9% each
April 4 Withdrew cash from bank for office 1000
April 13 Sold goods to Krishna for Rs. 1500 plus SGST and CGST @9% each
April 20 Bought goods from Shyam for Rs. 3000 plus SGST and CGST @9% each
April 24 Cash received from Krishna 1770
April 24 Sold goods to Rakesh for Rs.10000 plus SGST and CGST @9% each.
He paid the due amount immediately and availed cash Discount @2%
April 28 Cash Paid to Shyam 2150
Discount allowed by him 100
April 30 Cash sales for the month Rs.8000 plus SGST and CGST @9% each
April 30 Rent paid Rs.500 plus SGST and CGST @9% each
April 30 Paid Salary to Ram 3000
Salution :-
2019 Dr. Cr.
Cash A/c Dr. 100000
1-Apr
To Capital A/c 100000
Bank A/c Dr. 70000
2-Apr
To Cash A/c 70000
Purchase A/c 5000
Input CGST A/c 450
3-Apr
Input SGST A/c 450
To Cash A/c 5900
Cash A/c Dr. 1000
4-Apr
To Bank A/c 1000
Krishna Dr. 1770
To Sales A/c 1500
13-Apr
Output CGST A/c 135
Output SGST A/c 135
Purchase A/c 3000
Input CGST A/c 270
20-Apr
Input SGST A/c 270
To Shyam 3540
Bank A/c Dr. 11564
Discount allowed A/c 236
24-Apr To Sales A/c 10000
Output CGST A/c 900
Output SGST A/c 900
 Shyam Dr. 2250
28-Apr To Cash A/c 2150
To Discount Received A/c 100
Cash A/c Dr. 9440
To Sales A/c 8000
30-Apr
Output CGST A/c 720
Output SGST A/c 720
Rent A/c 500
Input CGST A/c 45
30-Apr
Input SGST A/c 45
To Cash A/c 590
Salaries A/c Dr. 3000
30-Apr
To Cash A/c 3000
2. Journal entries Involving Cash Discount.
Pass the Journal entries for the following Transaction:
1:- Purchased goods from Sanjiv of Rs. 40000 plus IGST @18% at 10% Trade Discount
and 2.5% cash Discount. Paid Amount at the time of purchase itself.
2:- Purchased goods from Vijay of Rs. 40000 plus IGST @18% at 10% Trade Discount
and 3% cash Discount. Half of the Amount paid at the time of purchase.
3:- Sold goods to Anil for Rs. 20000plus CGST and SGST @9% each allowed him 10% trade
Discount and 3% cash Discount. Received half of the Amount by cash and balance half
by cheque immediately.
4:- Sold goods to Ajay for Rs. 20000 plus CGST and SGST @9% each allowing 10% trade
Discount and 2% cash Discount.Half Received half of the Amount by cash and balance half
by cheque immediately.
CALCULATION OF TRADE DISCOUNT AND CASH DISCOUNT . RUPES
1. cost 40,000
LESS:TRADE DISCOUNT 4,000
36,000
ADD IGST @18% 6,480
INVOICE PRICE 42,480
LESS: CASH DISCOUNT2.5% 1,062
2. COST 40,000
LESS: TRADE DISCOUNT 10% 4,000
36,000
ADD IGST @18% 6,480
42,480
CREDIT TRANSACTION 21,240
CASH TRANSACTION 21,240
LESS:CASH DISCOUNT 3% 637
20,603
3.COST
SALE VALUE( GROSS) 20,000
LESS: TRADE DISCOUNT 10% 2,000
18,000
ADD CGST@9% 1,620
SGST @ 9% 1,620
21,240
BY CHEQUE 10,620 BY CASH 10,620
LESS : CASH DISCOUNT 3% 319 319
### 10,301
4. SALE VAIUE (GROSS) 50,000
LESS: TRADE DISCOUNT 10% 5,000
45,000
ADD : CGST @ 9% 4,050
SGST @ 9% 4,050
53,100
CASH TRANSACTION ( 1/2 OF RUP 53,100) 26,550
LESS :CASH DISCOUNT 531
26,019
CREDIT TRANSACTION 26,550

5. COST 40,000
ADD :PROFT25% ON COST 10,000
50,000
LESS: TRADE DISCOUNT @20% 10,000
INVOICE PRICE 40,000
ADD IGST @18 % 7,200

TOTAL INVOICE VALUE 47,200

LESS : CASH DISCOUNT 2% 944
Accounting Entries
A. Journal entries of Transactions on which GST is Not Chargred.
S. No. Transaction Journal Entry
Capital introduced Cash/Bank A/c
1
To Capital
Payment of wages and Salary Wages/salaries A/c
2
To cash/Bank/Outstanding wages A/c
Electricity and water bills paid Electricity/Water Charges A/c
3
To Cash/Bank
Interest Paid Interest a/c
4
To Cash/Bank/Outstanding Interest A/c
Interest Received Cash/Bank/Accrued Interest A/c
5
To Interest A/c
Cash deposited in bank Bank A/c
6
To Cash A/c
Cash Withdrawn from Bank Cash A/c
7
To Bank A/c
Cheque Deposited in Bank Bank A/c
8
To Cash/Debtor's A/c
Cheque issued for Purchases Creditor's/Purchase A/c
9
To Bank A/c
Conveyance Expenses Conveyance Expenses A/c
10
To Cash A/c
Depreciation on Machinery Depreciation A/c
11
Furniture To Machinery/Furniture A/c
Patents/Copyrights amortised Amortisation Expenses A/c
12
To Patents/Copyrights A/c
Advance received against Sale Cash/Bank A/c
13
To Customer's/Advance form customer A/c
Advance paid against Purchase Supplier's/Advance to Supplier A/c
14
To Cash/Bank A/c
Accounting Entries
B. Journal entries of Transactions on which GST is Paid {Input GST (CGST,SGST,IGST)}.
S. No. Transaction Journal Entry
Purchase of goods Explanation :- For Intra-state Purchase
Purchase A/c Dr.
Input CGST A/c Dr.
If Intra-state transaction, both CGST and Input SGST A/c Dr.
1 SGST is charged at half the prescribed To To Creditor's/cash/bank A/c
rate of GST. If Inter-state transaction, IGST For Inter-state Purchase
at the prescribed rate of GST is charged.
Purchase A/c Dr.
Input IGST A/c Dr.
To To Creditor's/cash/bank A/c
Purchase Return Explanation :- For Return of Intra-state Purchase
Creditor's/cash/bank A/c Dr.
To Purchase R
Purchased goods are returned. Hence,
input credit on returned goods is To Input CGST
2 reversed. Since at the time of purchase, To Output CGS
Input GST (CGST and SGST or IGST) is For Return of Inter-state Purchase
debited hence, Input GST (CGST and SGST
or IGST) is now credited. Creditor's/cash/bank A/c Dr.
To Purchase R
To Input IGST
Purchase of Assets Explanation :- In case of Intra-state Purchase
Assets A/c Dr.
Input CGST A/c Dr.
Input SGST A/c Dr.
3 Credit for GST Paid is allowed. Hence, To Vendor's/ bank A/c
Input GST (CGST and SGST or IGST) is
debited. In case of Inter-state Purchase
Assets A/c Dr.
Input IGST A/c Dr.
To Vendor's/ b
In case of Intra-state Purchase
Commission (Expense) Commission A/c Dr.
Input CGST A/c Dr.
Input SGST A/c Dr.
4 To Cash/Commission Payble/ bank A/c
In case of Inter-state Purchase
Commission A/c Dr.
Input IGST A/c Dr.
To Cash/Commission Payble/ bank A/c

Telephone Bill Telephone Expense A/c Dr.

Input CGST A/c Dr.
Input SGST A/c Dr.
5 To Cash/Outstanding telephone/bank A/c
5

Insurance premium for insuring business Insurance Expense A/c Dr.

Assets Explanation:- GST is charged and
input credit is allowed. Input CGST A/c Dr.
Input SGST A/c Dr.
6 To Cash/bank A/c

In case of Intra-state Transaction

Advertisement Expenses Explanation:- Advertisement Expense A/c Dr.
GST is charged and input credit is
allowed. Input CGST A/c Dr.
Input SGST A/c Dr.
7 To Cash/bank A/c
In case of Inter-state Transaction
Advertisement Expense A/c Dr.
Input IGST A/c Dr.
To Cash/bank A/c
In case of Intra-state Transaction
Bank charge Explanation:- GST is Bank Charge A/c Dr.
charged and input credit is allowed.
Input CGST A/c Dr.
Input SGST A/c Dr.
8 To bank A/c

In case of Intra-state Transaction

Printing and stationery Explanation:- Printing and stationery Expense A/c Dr.
GST is charged and input credit is
allowed. Input CGST A/c Dr.
Input SGST A/c Dr.
9 To Cash/bank A/c
In case of Inter-state Transaction
Printing and stationery Expense A/c Dr.
Input IGST A/c Dr.
To Cash/bank A/c
In case of Intra-state Transaction
Freight paid on goods Freight inwards A/c Dr.
Input CGST A/c Dr.
Input SGST A/c Dr.
10 To Cash/bank A/c
In case of Inter-state Transaction
10

Freight inwards A/c Dr.

Input IGST A/c Dr.
To Cash/bank A/c

Postage and courier Expenses Postage and courier Expense A/c Dr.
Explanation:- GST is charged and input
credit is allowed. Input CGST A/c Dr.
Input SGST A/c Dr.
11 To Cash/bank A/c

If goods were purchased intra-stare

Goods distributed as samples Advertisement/Samples A/c Dr.
Explanation:- Input GST on purchase is
cancelled, To Pu
To In
12 To In
If goods were purchased inter-stare
Advertisement/Samples A/c Dr.
To Pu
To In
If goods were purchased intra-stare
Goods taken by the proprietor for Drawings A/c Dr.
personal use (drawing) Explanation:-
Input GST on purchase is cancelled, To Pu
To In
13 To In
If goods were purchased inter-stare
Drawings A/c Dr.
To Pu
To In
Accounting Entries
C. Journal entries of Transactions on which GST is Charged {Output GST (CGST,SGST,IGST)}.
S. No. Transaction Journal Entry
Sale of goods Explanation :- For Intra-state Sale
Debtor,s/cash/bank A/c Dr.
To Sales A/c
To Output CGS
If Intra-state transaction, both CGST and
1 SGST is charged at half the prescribed To Output SGS
rate of GST. If Inter-state transaction, IGST For Inter-state Sale
at the prescribed rate of GST is charged.
Debtor,s/cash/bank A/c Dr.
To Sales A/c
To Output IGS
Sales Return Explanation :- For Return of Intra-state Sale
Sales Return A/c Dr.
Output CGST A/c Dr.
Sales goods are returned. Hence, input Output SGST A/c Dr.
credit on returned goods is reversed.
2 Since at the time of Sale, Output GST To Debtor,s/cash/bank A/c
(CGST and SGST or IGST) is debited For Return of Inter-state Sale
hence, Output GST (CGST and SGST or
IGST) is now credited. Sales Return A/c Dr.
Output IGST A/c Dr.
To Debtor,s/cash/bank A/c
 1. Classify the follwing accounts into personal,real and nominal. 2. State the nature of account (Personal,Real,Nominal) and s
I Cash X Purchase Which will be debited and which willl be credited.
II Bank XI Bad Debts Recovered I Rent received
III Outstanding Salary XII Plant and Machinery II Machinery purchased
IV Sales XIII Capital III Goods Purchased
V Accrued Interest XIV Interest paid IV Capital introduced
VI Liasehold property XV Bank Overdraf V Rent Paid
VII Drawings XVI Prepaid Rent VI Interest received
VIII Discount Received XVII Carriage in Ward VII Building Sold.
IX Bad Debts XVIII Goodwill VIII Discount Allowed
Solution :- IX Goods sold
Personal Accounts Real Accounts Nominal Accounts Solution :-
Bank Cash Purchase Accounts Nature of Account
Outstanding Salary Liasehold property Sales Rent received A/c Nominal
Accrued Interest Plant and Machinery Discount Received Machinery A/c Real
Drawings Goodwill Bad Debts Purchased A/c Nominal
Capital Bad Debts Recovered Capital a/c Personal
Bank Overdraf Interest paid Rent Paid A/c Nominal
Prepaid Rent Carriage in Ward Interest received A/c Nominal
Building A/c Real
Discount Allowed A/c Nominal
sales A/c Nominal
 sonal,Real,Nominal) and show
willl be credited.

tion :-
Debited/Credited
Credited
Debited
Debited
Credited
Debited
Credited
Credited
Debited
Credited
3. From the following transactions, state the nature of account and state
which account will be debited and which account will be credited: Rs.
1. Mohan started business with cash 5,00,000
2. Purchased goods for cash 1,00,000
3. Sold goods for cash 1,50,000
4. Received interest from ram in cash 500
5. Sold goods to Ashok 60,000
6. Purchased furniture for cash 50,000
7. Paid wages 20,000
Solution:
ANALYSIS OF TRANSACTIONS
Treasactions Accounts Nature of Debit Credit Reason
Involved Acccount Rs. Rs.
1. Mohan started business Cash
with Rs. 5,00,000 in cash. Capital
2. Purchased goods for cash Rs. Puechases
1,00,000. cash
3. Sold goods for cash Rs.
1,50,000.
4. Received interest from ram
in cash Rs. 500
5. Sold goods to Ashok for Rs.
60,000.
6. Purchased furnitre for cash
Rs. 50,000.
7. Paid wages Rs. 20,000.