Journal Entries

of Transactions Involving GST

Basic information:
• All transactions are of M/s Amar Sons, Delhi
• Applicable GST Rates are: CGST @ 9%
SGST @ 9%
IGST @ 18%

CA. (Dr.) G.S. Grewal Slide 33

Transaction:
Purchased goods for Rs. 1,00,000 from M/s General
Sales, Delhi.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Purchases A/c …Dr. 1,00,000
Input CGST A/c …Dr. 9,000
Input SGST A/c …Dr. 9,000
To M/s General Sales A/c 1,18,000
(Intra-state Purchase of
goods)

Note: It is a intra-state (within Delhi State) purchase.

Therefore, both CGST and SGST will be levied.
Transaction:
Purchased Office Chairs for Rs. 10,000 from M/s Furniture
Mart, Delhi against Cash

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Furniture A/c …Dr. 10,000
Input CGST A/c …Dr. 900
Input SGST A/c …Dr. 900
To Cash A/c 11,800
(Chairs purchased for
Office)

Note: It is a intra-state (within Delhi State) purchase.

Therefore, both CGST and SGST will be levied.
Transaction:
Purchased goods for Rs. 50,000 from M/s Perfect Sales,
Faridabad, Haryana against cheque.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Purchases A/c …Dr. 50,000
Input IGST A/c …Dr. 9,000
To Bank A/c 59,000
(Inter-state Purchase of
goods against cheque)

Note: It is a inter-state (Outside Delhi State) purchase.

Therefore, both CGST and SGST will be levied.
Transaction:
Paid Wages to factory workers Rs. 50,000 in cash for the
month of August, 2017.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Wages A/c …Dr. 50,000
To Cash A/c 50,000
(Paid Wages to factory
workers for the month of
August, 2017 )

Note: On Wages GST is not levied levied.

Transaction:
Paid Electricity bill of Rs. 20,000 by cheque for the month
of August, 2017.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Electricity Expenses A/c .Dr. 20,000
To Bank A/c 20,000
(Paid electricity bill for the
month of August, 2017 )

Note: Electricity is exempt from levy of GST.

Transaction:
Paid Telephone bill of Rs. 5,000 by cheque for the month
of August, 2017.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Telephone Exp. A/c ...Dr. 5,000
Input CGST A/c …Dr. 450
Input SGST A/c …Dr. 450
To Bank A/c 5,900
(Paid telephone bill for the
month of August, 2017 )

Note: Telephone service is not exempt from levy of GST.

Transaction:
Paid to Contractor Rs. 1,00,000 by cheque for repair of
factory building.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Repairs & Maintenance
Expenses A/c ...Dr. 1,00,000
Input CGST A/c …Dr. 9,000
Input SGST A/c …Dr. 9,000
To Bank A/c 1,18,000
(Paid repairs expenses to
contractor by cheque )
Note: Repairs are carried out at the factory building
within the state. Therefore, both CGST and SGST is
levied.
Transaction:
Purchased Machinery from M/s Arpit Machines, Gujarat
for Rs. 2,00,000.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Machinery A/c ...Dr. 2,00,000
Input IGST A/c …Dr. 36,000
To M/s Arpit Machines A/c 2,36,000
(Machinery purchased from
M/s Arpit Machines, Gujrat)

Note: Machinery is purchased is Inter – state transaction,

it being supplied from Gujarat. Therefore, IGST is levied.
Transaction:
Out of the Goods purchased from M/s General Sales,
Delhi given as Charity to a NGO Rs. 10,000.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Donation A/c ...Dr. 11,800
To Input CGST A/c 900
To Input SGST A/c 900
To Purchases A/c 10,000
(Goods purchased from M/s
General Sales, Delhi given
as charity)
Note: Goods given as charity is not a sale of goods.
Therefore, GST (CGST and SGST) that was levied at the
time of purchase is reversed.
Transaction:
Computer and Printer purchased from M/s HP Ltd., Noida
for Rs. 50,000 given as donation to a NGO. Payment made
by internet banking.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Donation A/c ...Dr. 59,000
To Bank A/c 59,000
(Computer and Printer
purchased from HP Ltd.,
Noida given as charity)

Note: Assets given as donation is not a sale of goods.

Therefore, Input GST is not claimed.
Transaction:
Bank Charges of Rs. 500 charged by bank for getting a
Bank Draft of Rs. 1,00,000.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Bank Charges A/c ...Dr. 500
Input CGST A/c …Dr. 45
Input SGST A/c …Dr. 45
To Bank A/c 590
(Bank Charges charged by
bank)

Note: Bank Charges are subject to levy of GST, it being a

service rendered by the bank.
Transaction:
Interest of Rs. 5,000 charged by bank on loan.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Interest A/c ...Dr. 5,000
To Bank A/c 5,000
(Interest charged by bank)

Note: Interest is not subject to levy of GST, as it is not a

service.
Transaction:
Paid Office rent by cheque Rs. 50,000.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Rent A/c ...Dr. 50,000
Input CGST A/c …Dr. 4,500
Input SGST A/c …Dr. 4,500
To Bank A/c 59,000
(Rent for Office premises
paid)

Note: Interest is not subject to levy of GST, as it is not a

service.
Transaction:
Sale of old computer used in office sold for Rs. 5,000
against cash.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Cash A/c ...Dr. 5,900
To Output CGST A/c 450
To Output SGST A/c 450
To Computer A/c 5,000
(Old Computer sold)

Note: An old asset sold is subject to levy of GST.

Whenever it is sold for cash place of supply is taken that
of the seller.
Transaction:
Sold goods for Rs. 1,00,000 to M/s Hariom Sales, Delhi.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
M/s Hariom Sales A/c …Dr. 1,18,000
To Output CGST A/c 9,000
To Output SGST A/c 9,000
To Sales A/c 1,00,000
(Goods sold)

Note: It is a case of intra – state (Within Delhi State) sale.

Hence, CGST and SGST is levied.
Transaction:
Sold goods to M/s Mohan Stores, Faridabad, Haryana for
Rs. 50,000.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
M/s Mohan Stores A/c …Dr. 59,000
To Output IGST A/c 9,000
To Sales A/c 50,000
(Goods sold)

Note: It is a case of inter – state (Outside Delhi State)

sale. Hence, IGST is levied.
Purchased 5 Laptops from HP Ltd. Noida for Rs. 50,000
each. Amount transferred through internet banking.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Purchases A/c …Dr. 2,50,000
Input IGST A/c …Dr. 45,000
To Bank A/c 2,95,000
(5 Laptops purchased from
HP Ltd. Noida, amount
transferred through internet
banking)

Note: It is a case of inter – state (Outside Delhi State)

purchase. Hence, IGST is levied.
1 Laptop purchased from HP Ltd. Noida for Rs. 50,000
used for accounting and office use.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Computers A/c …Dr. 50,000
To Purchases A/c 50,000
(1 Laptop out of Laptops
purchased from HP Ltd.
Noida, used for Office
purposes)

Note: It is a case where computer purchased for resale is

used for business purposes. Hence, IGST paid at the time
of purchase will not be reversed.
Transaction:
Commission received Rs. 10,000.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Cash / Bank A/c …Dr. 11,800
To Output CGST A/c 900
To Output SGST A/c 900
To Commission 10,000
Received A/c
(Commission received)

Note: Place of supply of service is not given. Hence, It is

a case of intra – state (Within Delhi State) supply of
service. Therefore, both CGST and SGST is levied.
Transaction:
Goods costing Rs. 10,000 lost in fire.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Loss By Fire A/c …Dr. 11,800
To Input CGST A/c 900
To Input SGST A/c 900
To Purchases A/c 10,000
(Goods lost in fire written off
and CGST and SGST
reversed)
Note: It is a case of stock loss. Also it is not given
whether the purchase of these goods was intra – state or
inter – state. It is taken as intra – state purchase hence,
both CGST and SGST levied is reversed.
Transaction:
Goods costing Rs. 20,000 lost in fire, Insurance Claim
lodged.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Insurance Co. A/c …Dr. 23,600
To Input CGST A/c 1,800
To Input SGST A/c 1,800
To Purchases A/c 20,000
(Goods lost in fire written off
and CGST and SGST
reversed)
Note: It is a case of stock loss. Also it is not given
whether the purchase of these goods was intra – state or
inter – state. Therefore, it is taken as intra – state
purchase hence, both CGST and SGST levied is reversed.
Transaction:
Goods costing Rs. 5,000 distributed as free sample.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Sample / Advertisement
Expenses A/c …Dr. 5,900
To Input CGST A/c 450
To Input SGST A/c 450
To Purchases A/c 5,000
(Goods given as sample
and CGST and SGST
reversed)
Goods are not sold but given as free sample. Also it is
not given whether the purchase of these goods was intra
– state or inter – state. It is taken as intra – state purchase
hence, both CGST and SGST levied is reversed.
Transaction:
Goods costing Rs. 10,000 taken for personal use.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Drawings A/c …Dr. 11,800
To Input CGST A/c 900
To Input SGST A/c 900
To Purchases A/c 10,000
(Goods given as sample
and CGST and SGST
reversed)
Goods are not sold but taken for personal use. Also it is
not given whether the purchase of these goods was intra
– state or inter – state. It is taken as intra – state purchase
hence, both CGST and SGST levied is reversed.
Transaction:
Health Insurance of partners Amit and Amrit Rs. 25,000.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Amit’s Drawings A/c …Dr. 14,750
Amrit’s Drawings A/c …Dr. 14,750
To Bank A/c 29,500
(Health Insurance premium
paid along with GST)

Input GST is not available on Health Insurance premium

of partners for two reasons:
1. It is not a business expense.
2. Input GST is not available on Health insurance.
Transaction:
Repaid Bank Loan of Rs. 1,00,000 along with interest of
Rs. 5,000.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Bank Loan A/c …Dr. 1,00,000
Interest A/c …Dr. 5,000
To Bank A/c 1,05,000
(Bank loan and interest
paid)

GST is not levied on loan and interest.

Transaction:
Credit Card late payment fee of Rs. 5,000.

JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Late Payment Fee A/c …Dr. 5,000
Input CGST A/c …Dr. 450
Input SGST A/c …Dr. 450
To Bank A/c 5,900
(Late payment fee paid on
credit card payment)

GST is levied on late payment fee.

Transaction:
Goods purchased from M/s Shaw Traders were of poor
quality. They allowed rebate of Rs. 5,000.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Shaw Traders …Dr. 5,900
To Purchases A/c 5,000
To Input CGST A/c 450
To Input SGST A/c 450
(Rebate received on goods
due to poor quality, Input
CGST and SGST reversed)
Input GST is reversed because rebate reduces the cost of
purchases. Hence, Input GST should be claimed on
reduced cost.
Transaction:
Liability of Rs. 50,000 due to M/s Arvind Agencies settled
by payment of Rs. 45,000.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Arvind Agencies …Dr. 50,000
To Bank A/c 45,000
To Discount Received A/c 5,000
(Discount received on
settlement of account)

It is a settlement of account and no service has been

rendered. Hence, GST is not levied.
Purchased Machinery for Rs. 1,00,000 from M/s Vidyut
Machines Ltd., Gujarat. An old machine with Book Value
of Rs. 25,000 and also valued at Rs. 25,000 was given in
settlement. Balance was paid by cheque.
JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Machinery A/c …Dr. 1,00,000
Input IGST A/c 18,000
To Vidyut Machines Ltd. 1,18,000
(Machinery purchased from
Vidyut Machines Ltd.,
Gujarat)

It is a Inter – state purchase of Machine. Therefore, IGST

is levied.
 JOURNAL ENTRY
DATE PARTICULARS L AMT. AMT.
F (DR.) (CR.)
Vidyut Machines Ltd. …Dr. 1,18,000
To Machinery (Old) A/c 25,000
To Output IGST A/c 4,500
To Bank A/c 88,500
(Vidyut Machines Ltd. paid
by giving old machine
valued at Rs. 25,000 plus
IGST and cheque for
balance amount)
Purchase of new machine and settlement by giving a
machine are two independent transactions. First
transaction is that of purchase and second is that of sale.
Both the transactions are that of inter – state and hence,
IGST is levied.
Pass the Journal Entries up to the set off of taxes for following
transactions of M/s. Logistics of Delhi for the month of July, 2017:
Date Particulars Amount (Rs.)
3 Purchased goods from M/s Amar Sales, Delhi 50,000
5 Purchased goods from M/s Blue Traders, Chennai 80,000
5 Deposited CGST Rs. 1,000; SGST Rs. 1,000; and IGST Rs. 5,000
10 Sold goods to M/s Rahul Traders, Delhi 30,000
10 Sold goods against cash to a customer 2,000
15 Sold goods to Basu Sales, Kolkata 1,50,000
15 Paid Restaurant bill for lunch with customer 5,900
(including GST)
15 Paid to Lawyer for Consultation 5,000
20 Sold goods on credit to Rahul, a customer 10,000
30 Paid Telephone Expenses (including GST) 5,900
30 Paid Electricity Bill 5,000
31 Paid Salaries to Staff 15,000
GST rates of CGST @ 9%, SGST @ 9%, IGST @ 18% and on Lawyer’s fee
under Reverse charge CGST @ 2.5% and SGST @ 2.5%.
Transaction:
Purchased goods for Rs. 50,000 plus GST from Amar
Sales, Delhi

JOURNAL ENTRY
DATE PARTICULARS LF AMT. AMT.
(DR.) (CR.)
2017 Purchases A/c …Dr. 50,000
July 3 Input CGST A/c …Dr. 4,500
Input SGST A/c …Dr. 4,500
To Amar Sales 59,000
(Intra-state Purchase of
goods)

Note: It is a intra-state (within state) transaction.

Therefore, both CGST and SGST will be levied.
Transaction:
Purchases goods of Rs. 80,000 from Blue Traders,
Chennai

DATE PARTICULARS LF AMT. AMT.

(DR.) (CR.)
5 Purchases A/c …Dr. 80,000
Input IGST A/c …Dr. 14,400
To Blue Traders 94,400
(Inter-state Purchase of
goods)

Note:
It is a inter – state transaction (between Delhi and
Chennai). Therefore, IGST will be levied.
Transaction:
Deposited CGST – Rs. 1,000; SGST – Rs. 1,000 and IGST
Rs. 5,000.

5 Input CGST A/c …Dr. 1,000

Input SGST A/c …Dr. 1,000
Input IGST A/c …Dr. 5,000
To Bank A/c 7,000
(GST deposited)
Transaction:
Sold goods to Rahul Traders, Delhi of Rs. 30,000

10 Rahul Traders …Dr. 35,400

To Sales A/c 30,000
To Output CGST A/c 2,700
To Output SGST A/c 2,700
(Intra-state sale of goods)
Transaction:
Cash sale over the counter Rs. 2,000

10 Cash A/c …Dr. 2,360

To Sales A/c 2,000
To Output CGST A/c 180
To Output SGST A/c 180
(Cash sale of goods)
Transaction:
Goods sold to Basu Sales, Kolkata of Rs. 1,50,000.

15 Basu Sales …Dr. 1,77,000

To Sales A/c 1,50,000
To Output IGST A/c 27,000
(Inter-state sale of goods)

Note:
It is a inter – state transaction (between Delhi and
Kolkata). Therefore, IGST will be levied.
Transaction:
Paid Restaurant bill for lunch with customer Rs. 5,900
(inclusive of GST).

15 Entertainment A/c ...Dr. 5,900

To Cash A/c 5,900
(Paid restaurant bill)

Note:
Input CGST and Input SGST is not claimed because input
credit of GST is not allowed.
Transaction:
Fee paid to Lawyer for consultation Rs. 5,000.

15 Professional Fee A/c ...Dr. 5,000

Input CGST A/c …Dr. 125
Input SGST A/c …Dr. 125
To Bank A/c 5,250
(Professional fee paid and
CGST and SGST paid
under Reverse Charge)

Note:
GST on lawyer fee is paid by the receiver of service.
Transaction:
Goods sold to Rahul Rs. 10,000.

20 Rahul …Dr. 11,800

To Sales A/c 10,000
To Output CGST A/c 900
To Output SGST A/c 900
(Intra-state sale of goods)
Transaction:
Telephone bill for the month paid – Rs. 5,000

30 Telephone Exp. A/c …Dr. 5,000

Input CGST A/c …Dr. 450
Input SGST A/c …Dr. 450
To Cash A/c 5,900
(Telephone Bill paid)
Transaction:
Paid Electricity Bill of Rs. 5,000

30 Electricity Exp. A/c ...Dr. 5,000

To Cash A/c 5,000
(Electricity Bill Paid)
Transaction:
Paid salary for the month Rs. 15,000.

30 Salaries A/c …Dr. 15,000

To Bank A/c 15,000
(Salaries paid for the
month)
Dr. Input CGST Account Cr.
Particulars Rs. Particulars Rs.
To Amar Sales 4,500 By Output CGST A/c 3,780
To Bank A/c 1,000 By Output IGST A/c 2,295
To Cash A/c (Fee) 125
To Cash A/c (Tel.) 450

6,075 6,075

Dr. Output CGST Account Cr.

Particulars Rs. Particulars Rs.
To Input CGST A/c 3,780 By Rahul Traders 2,700
By Cash A/c 180
By Rahul 900

3,780 3,780
31 Output CGST A/c …Dr. 3,780
To Input CGST A/c 3,780
(Being the Output CGST
set off against Input
CGST)
31 Output IGST A/c …Dr. 2,295
To Input CGST A/c 2,295
(Being the Output IGST
set off against Input
CGST)
Dr. Input SGST Account Cr.
Particulars Rs. Particulars Rs.
To Amar Sales A/c 4,500 By Output SGST A/c 3,780
To Bank A/c 1,000 By Output IGST A/c 2,295
To Cash A/c (Fee) 125
To Cash A/c (Tel) 450

6,075 6,075

Dr. Output SGST Account Cr.

Particulars Rs. Particulars Rs.
To Input CGST A/c 3,780 By Rahul Traders 2,700
By Cash A/c 180
By Rahul 900

3,780 3,780
31 Output SGST A/c …Dr. 3,780
To Input SGST A/c 3,780
(Being the Output CGST
set off against Input
CGST)
31 Output IGST A/c …Dr. 2,295
To Input SGST A/c 2,295
(Being the Output IGST
set off against Input
SGST)
Dr. Input IGST Account Cr.
Particulars Rs. Particulars Rs.
To Blue Traders 14,400 By Output IGST A/c 22,410
To Bank A/c 5,000
To Bank A/c 3,010
22,410 22,410

Dr. Output IGST Account Cr.

Particulars Rs. Particulars Rs.
To Input IGST A/c 22,410 By Basu Sales 27,000
To Input CGST A/c 2,295
To Input SGST A/c 2,295

27,000 27,000
31 Input IGST A/c …Dr. 3,010
To Bank A/c 3,010
(Being the IGST
deposited)
31 Output IGST A/c …Dr. 27,000
To Input IGST A/c 22,410
To Input CGST A/c 2,295
To Input SGST A/c 2,295
(Set off of IGST )
Vijay Sales, Delhi entered into following transactions in the
month of July, 2017 for which prepare the necessary books:
Date Particulars
7 Purchased 10 Cordless Keyboards from M/s Reliable Sales,
Delhi @ Rs. 2,000 each, against cheque.
8 Purchased from HP Ltd. Noida (UP)
10 Desktop Computers @ Rs. 15,000 each
10 Monitors 14” @ Rs. 2,500 each
10 Laptop Carry Bags @ Rs. 300 each
Trade Discount 20%
Purchased 50 Pens @ Rs. 10 each from Reynolds in cash
for Office Use
10 Purchase from Sony Ltd., Delhi 5 Laptops @ Rs. 25,000
each
10 Purchased from HP Ltd. Noida (UP) against cheque
5 Inkjet Printers @ Rs. 3,500 each
2 Lazor Printers @ Rs. 18,000 each
10 Cordless Mouse @ Rs. 1,000 each
13 Sold to Mehra Agencies, Delhi
4 Desktop Computers @ Rs. 17,500 each;
4 Monitors 14” @ Rs. 3,500 each;
2 Sony Laptops @ Rs. Rs. 35,000; Laptop Bags were given
free along with the Laptops;
2 Inkjet Printers @ Rs. 4,500.
15 Counter Sale was
2 Desktop Computers @ Rs. 17,500 each;
2 Monitors 14” @ Rs. 3,500 each;
1 Laptop @ Rs. 30,000 each and gave Carry Bags free with
the laptop;
2 Inkjet Printers @ Rs. 3,500.
Additional Information:
1. Applicable GST rates are: CGST 6%, SGST 6% and
IGST 12%;
2. Firm donated 1 Desktop Computer and Monitor to a
nearby school;
3. Proprietor took a Desktop Computer, Monitor and
Mouse for his personal use.
4. One Desktop Computer and 5 Cordless Keyboards
were returned, they being defective;
5. Mehra Agencies returned one Desktop Computer, it
being defective. It was returned to the seller against
debit note.
6. One Laptop and Inkjet printer was used for preparing
bills and for accounting.
Record the transactions in the books (including subsidiary
books) of the firm.

CA. (Dr.) G.S. Grewal Slide 85

Entries to be recorded in Purchases Book

Date Particulars
8 Purchased from HP Ltd. Noida (UP)
10 Desktop Computers @ Rs. 15,000 each
10 14” Monitors @ Rs. 2,500 each
10 Laptop Carry Bags @ Rs. 300 each
Trade Discount 20%
10 Purchase from Sony Ltd., Delhi 5 Laptops @ Rs. 25,000
each
 Purchases Book for July, 2017
Dt Particulars L Details Cost Input Input Input Total
F (Rs.) (Rs.) CGST SGST IGST (Rs.)
(Rs.) (Rs.) (Rs.)
8 HP Ltd, Noida UP
10 Desktop Computers @
Rs. 15,000 each 1,50,000
10 14” Monitors @
Rs. 2,500 each 25,000
10 Laptop Carry Bags @
Rs. 300 each 3,000
1,78,000
Less Trade Discount (20%) 35,600
1,42,400
Add: IGST 12% 17,088
1,59,488 1,42,400 - - 17,088 1,59,488

10 Sony Ltd., Delhi

5 Laptops @ Rs. 25,000 1,25,000
Add: CGST @ 6% 7,500
SGST @ 6% 7,500
1,40,000 1,25,000 7,500 7,500 - 1,40,000
Total 2,67,400 7,500 7,500 17,088 2,99,488
Journal Entry for Purchases Book

2017 Purchases A/c …Dr. 2,67,400

July Input CGST A/c …Dr. 7,500
30 Input SGST A/c …Dr. 7,500
Input IGST A/c …Dr. 17,088
To HP Ltd., Noida 1,59,488
To Sony Ltd., Delhi 1,40,000
(Being the Goods
purchased)
Entries to be recorded in Sales Book

13 Sold to Mehra Agencies, Delhi

4 Desktop Computers @ Rs. 17,500 each;
4 Monitors 14” @ Rs. 3,500 each;
2 Sony Laptops @ Rs. Rs. 35,000; Laptop Bags were
given free along with the Laptops;
2 Inkjet Printers @ Rs. 4,500.
 Sales Book for July, 2017
Dt Particulars L Details Cost Output Output Otput Total
F (Rs.) (Rs.) CGST SGST IGST (Rs.)
(Rs.) (Rs.) (Rs.)
13 Mehra Agencies, Delhi
4 Desktop Computers @
Rs. 17,500 each 70,000
4 Monitors (14”) @
Rs. 3,500 each 14,000
2 Sony Laptops @
Rs. 34,700 each 69,400
2 Laptop Bags @ Rs. 300 600
2 Inkjet Printers @
Rs. 4,500 9,000
1,63,000
Add: CGST 6% 9,780
SGST 6% 9,780
1,82,560 1,63,000 9,780 9,780 1,82,560
Journal Entry of Sales Book

30 Mehra Agencies, Delhi ..Dr. 1,82,560

To Sales A/c 1,63,000
To Output CGST A/c 9,780
To Output SGST A/c 9,780
(Being sale for the period)
Entries to be recorded in Purchases Return Book:
1. One Desktop Computer and 5 Cordless Keyboards
were returned, they being defective.
Purchase Cost of Desktop Computer Rs. 15,000
less 20% Trade Discount purchased from HP
Ltd. Noida
Purchase Cost of Cordless Keyboards Rs. 2,000
purchased from Reliable Agencies, Delhi
2. Mehra Agencies returned one Desktop
Computer, it being defective. It was returned to
the seller against Debit Note.
Purchase Cost of Desktop Computer Rs. 15,000
purchased from HP Ltd. Noida
CA. (Dr.) G.S.
Grewal Slide 92
 Purchases Return Book for July, 2017
Dt Particulars L Details Cost Input Input Input Total
F (Rs.) (Rs.) CGST SGST IGST (Rs.)
(Rs.) (Rs.) (Rs.)
30 HP Ltd., Noida
2 Desktop Computers @
Rs. 15,000 each 30,000
Less: Trade Discount 20% 6,000
24,000
Add: IGST @ 12% 2,880
26,880 24,000 2,880 26,880

Reliable Agencies
5 Cordless Keyboards @
Rs. 2,000 10,000
Add: CGST 6% 600 - -
SGST 6% 600
11,200 10,000 600 600 11,200

Total 34,000 600 600 2,880 38,080

Journal Entry of Purchases Return Book
2017 HP Ltd. Noida …Dr. 26,880
July Reliable Agencies …Dr. 11,200
30 To Purchases Returns A/c 34,000
To Input CGST A/c 600
To Input SGST A/c 600
To Input IGST A/c 2,880
(Being the purchases
returns accounted)
Entries to be recorded in Sales Return Book:
Mehra Agencies, Delhi returned one Desktop
Computer, it being defective.
Sale price of Desktop Computer Rs. 17,500.

CA. (Dr.) G.S.

Grewal Slide 95
 Sales Return Book for July, 2017
Dt Particulars L Details Cost Outpu Outpu Outpu Total
F (Rs.) (Rs.) t t t (Rs.)
CGST SGST IGST
(Rs.) (Rs.) (Rs.)
30 Mehra Agencies, Delhi
1 Desktop Computers
@ Rs. 17,500 each 17,500
Add: CGST @ 6% 1,050
SGST @ 6% 1,050
19,600 17,500 1,050 1,050 19,600
Journal Entry of Sales Return Book

2017 Sales Returns A/c …Dr. 17,500

July Output CGST A/c …Dr. 1,050
30 Output SGST A/c …Dr. 1,050
To Mehra Agencies, Delhi 19,600
(Being the sales return
recorded)
Entries to be recorded in Cash Book:

Date Particulars
7 Purchased 10 Cordless Keyboards from M/s Reliable Sales,
Delhi @ Rs. 2,000 each, against cheque.
Purchased 50 Pens @ Rs. 10 each from Reynolds in cash
for Office Use
10 Purchased from HP Ltd. Noida (UP) against cheque
5 Inkjet Printers @ Rs. 3,500 each
2 Lazor Printers @ Rs. 18,000 each
10 Cordless Mouse @ Rs. 1,000 each
15 Counter Sale was
2 Desktop Computers @ Rs. 17,500 each;
2 Monitors 14” @ Rs. 3,500 each;
1 Laptop @ Rs. 30,000 each and gave Carry Bags free with
the laptop;
2 Inkjet Printers @ Rs. 3,500.
Dr. CASH BOOK Cr
Dt. Particulars Cash Bank Dt. Particulars Cash Bank
(Rs.) (Rs.) (Rs.) (Rs.)
15 To Sales A/c 79,000 7 By Reliable Sales 20,000
To Output CGST A/c 4,740 (Purchases)
To Output SGST A/c 4,740 By Input CGST A/c 1,200
By Input SGST A/c 1,200
8 By Printing and
Stationery A/c 560
10 By HP Ltd. Noida 63,500
(Purchases)
By Input IGST A/c 7,620
 JOURNAL ENTRIES
DATE PARTICULARS LF AMT. AMT.
(DR.) (CR.)
2017 Donation A/c …Dr. 15,680
July To Purchases A/c 14,000
30 To Input IGST A/c 1,680
(Donated a Desktop
Computer and Monitor)
30 Drawings A/c …Dr. 16,800
To Purchases A/c 15,000
To Input IGST A/c 1,680
To Input CGST A/c 60
To Input SGST A/c 60
(Desktop Computer Monitor
and Monitor taken for
personal use)
30 Computer A/c …Dr. 25,000
Printer A/c …Dr. 3,500
To Purchases A/c 28,500
(Desktop and Printer used
for business)
30 Purchases A/c …Dr. 2,67,400
Input CGST A/c …Dr. 7,500
Input SGST A/c …Dr. 7,500
Input IGST A/c …Dr. 17,088
To HP Ltd., Noida 1,59,488
To Sony Ltd., Delhi 1,40,000
(Being the Goods purchased)
30 Mehra Agencies, Delhi …Dr. 1,82,560
To Sales A/c 1,63,000
To Output CGST A/c 9,780
To Output SGST A/c 9,780
(Being sale for the period)
30 HP Ltd. Noida …Dr. 26,880
Reliable Agencies …Dr. 11,200
To Purchases Returns A/c 34,000
To Input CGST A/c 600
To Input SGST A/c 600
To Input IGST A/c 2,880
(Being the purchases
returns accounted)

30 Sales Returns A/c …Dr. 17,500

Output CGST A/c …Dr. 1,050
Output SGST A/c …Dr. 1,050
To Mehra Agencies, Delhi 19,600
(Being the sales return
recorded)
30 Output CGST A/c …Dr. 8,040
To Input CGST A/c 8,040
(Being the Input CGST
adjusted against Output
CGST)
30 Output SGST A/c …Dr. 8,040
To Input SGST A/c 8,040
(Being the Input SGST
adjusted against Output
SGST)
30 Output CGST A/c …Dr. 5,430
Output SGST A/c …Dr. 5,430
To Input IGST A/c 10,860
(Being the Input IGST
adjusted against Output
CGST and SGST)
Dr. Input CGST Account Cr.
Particulars Rs. Particulars Rs.
To Bank A/c 1,200 By Drawings A/c 60
(Reliable Sales) By Sundries 600
To Sundries 7,500 (Purchases Ret. Book)
(Purchase Book) By Output CGST A/c 8,040

8,700 8,700

Dr. Input SGST Account Cr.

Particulars Rs. Particulars Rs.
To Bank A/c 1,200 By Drawings A/c 60
(Reliable Sales) By Sundries 600
To Sundries 7,500 (Purchases Ret. Book)
(Purchases Book) By Output CGST A/c 8,040

8,700 8700
Dr. Output CGST Account Cr.
Particulars Rs. Particulars Rs.
To Sundries (Sale R B) 1,050 By Cash A/c (Sales) 4,740
To Input CGST A/c 8,040 By Sundries 9,780
To Input IGST A/c 5,430 (Sales Book)
14,520 14,520

CGST (In Statement Form)

CGST Collected – Cash Sale 4,740
Credit Sale 9,780 14,520
Less: CGST Reversed on Returns 1,050
13,470
Adjusted for Input CGST (CGST paid)
CGST Paid on Credit Purchases 7,500
Cash Purchases 1,200
8,700
Less: Adjusted for Drawings 60
Purchases Return Book 600 660 8,040
Adjusted from Input IGST 5,430
Dr. Output SGST Account Cr.
Particulars Rs. Particulars Rs.
To Sundries (Sales 1,050 By Cash A/c (Sales) 4,740
Returns Book) By Sundries
To Input SGST A/c 8,040 (Sales Book) 9,780
To Input IGST A/c 5,430
14,520 14,520
Dr. Input IGST Account Cr.
Particulars Rs. Particulars Rs.
To Sundries 17,088 By Donation A/c 1,680
(Purchases Book) By Drawings A/c 1,680
To Bank A/c 7,620 By Sundries 2,880
(Purchases) (Purchase Ret. Book)
By Output CGST A/c 5,430
By Output SGST A/c 5,430
By Balance c/d 7,608

24,708 24,708
Goods and Service Tax (GST)

Please be free to write query at:

CA. (Dr.) G. S. Grewal
E-mail : cagsgrewal@gmail.com
Phone: 9811242856