DK Goel Solutions Chapter 10 Accounting for Goods and Service Tax (GST)

DK Goel Accountancy Class 11 Solutions Chapter 10 Accounting for Goods and Service Tax (GST) which are outlined by expert Accountancy teachers from the latest version of DK Goel Class 11 Accountancy books. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. There are numerous concepts in Accountancy, but the concepts of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required.

DK Goel Accountancy Class 11 Solutions – Chapter 10

Short Answer Question

Question 1

What is GST?

Answer: Goods and services tax (GST) is a tax imposed indirectly on the goods and services supply.

Question 2

Name the two central taxes that have merged into GST.

Answer: The two central taxes that have merged into GST are excise duty and customs duty.

Question 3

Name the two-state taxes that have merged into GST.

Answer: The two-state taxes that have merged into GST are purchase tax and VAT.

Question 4

Give two advantages of GST.

Answer: The two advantages of GST are a) decreases the cost of goods and b) reduces tax invasion.

Question 5

What is the full form of CGST?

Answer: The full form of CGST is Central Goods and Services Tax.

Question 6

What is the full form of SGST?

Answer: The full form of SGST is State Goods and Services Tax.

Question 7

What is the full form of IGST?

Answer: The full form of IGST is Integrated Goods and Services Tax.

Question 8

What is CGST?

Answer: CGST is a tax imposed on supplies of goods and services within the state-imposed by the central government and administered by the CGST Act.

Question 9

What is IGST?

Answer: IGST is a tax imposed on all Inter-state supplies of both import and export of goods and services and is supervised by the IGST Act.

Practical Question

Question 1

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%.

2018

Particulars

March 01

04

15

18

25

31

Bought goods for ₹ 5,00,000 from Mehta Bros.

Goods sold for ₹ 8,00,000 to Munjal & Co.

Paid for advertisement ₹ 40,000 by cheque.

Bought furniture for office use ₹ 50,000 and payment made by cheque.

Paid for printing and stationery ₹ 8,000.

Payment of the balance amount of GST.

Solution:

Date

2018

Particulars

L.F

Debit (₹)

Credit (₹)

March 01

Purchases A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

5,00,000

45,000

45,000

To Mehta Bros. A/c

(Bought goods from Mehta bros.)

Dr.

5,90,000

04

Munjal & Co. A/c

.

9,44,000

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Goods sold to Munjal & Co.)

8,00,000

72,000

72,000

15

Advertisement A/c

Input CGST A/c

Input SGST A/

Dr.

Dr.

Dr.

40,000

3,600

3,600

To Bank A/c

(Advertisement payment)

47,200

18

Furniture A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

50,000

4,500

4,500

To Bank A/c

(Bought furniture for office)

59,000

25

Printing & Stationery A/c

Input CGST A/c

Input SGST A/c

8,000

720

720

To Cash A/c

Stationery and printing payment)

9,440

31

Output CGST A/c

Output SGST A/c

53,820

53,820

To Input CGST A/c

To Input SGST A/c

(Availed Input tax credit)

53,820

53,820

31

Output CGST A/c

Output CGST A/c

18,180

18,180

To Bank A/c

(Payment of balance tax to government)

36,360

17,93,640

17,93,640

Question 2

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

Particulars

March 04

07

10

12

20

25

26

31

Purchased goods for ₹ 5,00,000 from Sunil Bros.

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

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

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

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

Goods distributed as free samples ₹ 5,000.

Paid advertisement expenses by cheque ₹20,000.

Payment made of balance amount.

Solution:

Date

2018

Particulars

L.F

Debit (₹)

Credit (₹)

March 04

Purchases A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

5,00,000

45,000

45,000

To Sunil Bros. A/c

(Bought from Sunil Bros.)

5,90,000

07

Sunil Bros. A/c

Dr.

23,600

To Purchases Return A/c

To Input CGST A/c

To Input SGST A/c

(Returned goods to Sunil Bros.)

20,000

1,800

1,800

10

Mehta& Co. A/c

Dr.

9,44,000

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Goods sold to Mehta& Co.)

8,00,000

72,000

72,000

12

Sales Return A/c

Output CGST A/c

Output SGST A/c

Dr.

Dr.

Dr.

30,000

2,700

2,700

To Mehta & Co. A/c

(Returned goods by Mehta & Co.)

35,400

20

Drawings A/c

Dr.

11,800

To Purchases Return A/c

To Input CGST A/c

To Input SGST A/c

(Withdrawn goods for personal use)

10,000

900

900

25

Free Samples A/c

Dr.

5,900

To Purchases Return A/c

To Input CGST A/c

To Input SGST A/c

(Distributed goods as free samples)

5,000

450

450

26

Advertisement A/c

To Input CGST A/c

To Input SGST A/c

Dr.

Dr.

Dr.

20,000

1,800

1,800

To Bank A/c

(Advertisement payment)

23,600

31

Output CGST A/c

Output SGST A/c

Dr.

Dr.

43,650

43,650

To Input CGST A/c

To Input SGST A/c

(Availed Input tax credit)

43,650

43,650

31

Output CGST A/c

Output SGST A/c

Dr.

Dr.

25,650

25,650

To Bank A/c

(Payment of balance tax to government)

25,650

17,72,900

17,72,900

Question 3

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.

Particulars

  1. Bought goods from Nanak Bros. for ₹ 4,00,000 at 10% trade discount and 3% cash discount on the purchase price. 25% of the amount paid at the time of purchase.
  2. Sold goods to Kumar & Sons. for ₹ 2,00,000 at 20% trade discount and 5% cash discount on sale price. 60% of the amount received by Cheque.
  3. Received from Gopi Chand ₹ 38,000 by Cheque after deducting 5% cash discount.
  4. Paid ₹ 20,000 for rent by Cheque.
  5. Paid ₹ 50,000 for salaries by Cheque.
  6. Goods worth ₹ 10,000 distributed as free samples.
  7. ₹ 5,000 due from Chanderkant are bad-debts.
  8. Sold household furniture for ₹ 15,000 and the proceeds were invested into business.

Solution:

Sl.no

Particulars

L.F

Debit (₹)

Credit (₹)

Purchases A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

3,60,000

32,400

32,400

To Cash A/c

To Nanak Bros. A/c

To Discount Received A/c

(Goods purchased)

1,03,014

3,18,600

3,186

Kumar & Sons A/c

Bank A/c

Discount Allowed A/c

Dr.

Dr.

Dr.

75,520

1,07,616

5,664

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Goods Sold)

1,60,000

14,400

14,400

Bank A/c

Discount Allowed A/c

Dr.

Dr.

38,000

2,000

To Gopi Chand A/c

(Received full settlement from Gopi Chand)

40,000

Rent A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

20,000

1,800

1,800

To Bank A/c

(Paid for rent)

23,600

Salaries A/c

Dr.

50,000

To Bank A/c

(Paid salaries)

50,000

Advertisement A/c

Dr.

11,800

To Purchases A/c

To Input CGST A/c

To Input SGST A/c

(Goods distributed as free samples)

10,000

900

900

Bad Debts A/c

Dr.

5,000

To Chanderkant A/c

(Debtor proved bad)

5,000

Cash A/c

Dr.

15,000

To Capital A/c

(Invested money into business)

15,000

7,59,000

7,59,000

Question 4

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

Particulars

  1. Purchased goods for ₹ 2,00,000 from Suryakant of Jaipur (Rajasthan) on Credit.
  2. Sold goods for ₹ 1,50,000 to Mr. Pawar of Mumbai (Maharashtra) and the cheque received was sent to bank.
  3. Sold goods for ₹ 2,50,000 within the state on credit.
  4. Paid insurance premium of 20,000 by cheque.
  5. Purchased furniture for office for ₹ 60,000 by cheque.
  6. Payment made of balance amount of GST.

Solution:

Sl.no

Particulars

L.F

Debit (₹)

Credit (₹)

1

Purchases A/c

Input IGST A/c

Dr.

Dr.

2,00,000

36,000

To Suryakant’s A/c

(Goods purchased on credit)

2,36,000

2

Bank A/c

Dr.

1,77,000

To Sales A/c

To Output IGST A/c

(Sold Goods)

1,50,000

27,000

3

Debtors A/c

Dr.

2,95,000

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Sold goods on credit)

2,50,000

22,500

22,500

4

Insurance Premium A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

20,000

1,800

1,800

To Bank A/c

(Insurance premium payment)

23,600

5

Office Furniture A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

60,000

5,400

5,400

To Bank A/c

(Bought office furniture)

70,800

6

Output IGST A/c

Dr.

27,000

To Input IGST A/c

(Availed Input Tax credit up to Rs.27,000 and balance to be adjusted against Output CGST)

27,000

7

Output CGST A/c

Dr.

22,500

To Input CGST A/c

To Input SGST A/c

To Bank A/c

(Availed Input tax credit and paid balance)

7,200

9,000

6,300

8

Output SGST A/c

Dr.

22,500

To Input SGST A/c

To Bank A/c

(Availed Input tax credit availed and paid balance)

7,200

15,300

8,74,400

8,74,400

Working Note:

Procedure for GST Common Set Off:

Output IGST (₹)

Output CGST (₹)

Output SGST (₹)

27000

22500

22500

Input IGST

–27,000

(36000-9000)

–9000

Input CGST

–7,200

(1800 + 5400)

Input SGST

–7,200

(1800 + 5400)

Payable

Nil

6,300

15,300

Question 5

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

March

Particulars

5

12

14

18

20

31

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

Sold goods costing ₹ 60,000 at 50% profit to Partap Sinha of Ranchi.

Purchased goods for ₹ 70,000 from Ram Nath of Kanpur against cheque.

Sold goods at Varanasi (U.P.) Costing ₹ 2,25,000 at 33½% profit less trade discount 10% against cheque which was deposited into the bank.

Paid rent ₹ 25,000 by cheque.

Payment made of balance amount of GST.

Solution:

Sl.no

Particulars

L.F

Debit (₹)

Credit (₹)

5

Purchases A/c

Input IGST A/c

Dr.

Dr.

2,50,000

30,000

To Virender Yadav A/c

(Purchased goods on credit)

2,80,000

12

Partap Sinha A/c

Dr.

1,00,800

To Sales A/c

To Output IGST A/c

(Goods Sold on credit)

90,000

10,800

14

Purchases A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.Dr.

70,000

4,200

4,200

To Bank A/c

(Goods bought against cheque)

78,400

18

Bank A/c

Dr.

3,02,400

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Goods sold against cheque)

2,70,000

16,200

16,200

20

Rent A/c

Input CGST A/c

Input SGST A/c

Dr.

25,000

1,500

1,500

To Bank A/c

(REnt paid by cheque)

28,000

31

Output IGST A/c

Dr.

10,800

To Input IGST A/c

(Availed input tax credit)

10,800

31

Output CGST A/c

Dr.

16,200

To Input CGST A/c

To Input IGST A/c

To Bank A/c

(Availed input tax credit)

5,700

10,500

31

Output SGST A/c

Dr.

16,200

To Input SGST A/c

To Input IGST A/c

To Bank A/c

(Availed input tax credit and paid balance)

5,700

8,700

1,800

8,32,800

8,32,800

Question 6

Pass entries in the books of all parties in the following cases assuming CGST @ 6% and SGST @ 6%.

March

Particulars

1

5

10

14

Mahesh Chandra of Bihar purchased goods for ₹ 1,00,000 from Sunil Soren of Jharkhand and sold the same to Deepak Patnaik of Odisha for ₹ 1,50,000.

Deepak Patnaik sold goods to Suresh Yadav of Odisha for ₹ 1,80,000.

Suresh Yadav sold goods to Ravi Chakravarti of West Bengal for ₹ 2,50,000.

Ravi Chakravarti sold goods costing ₹ 2,50,000 to Sanjay Diwedi of West Bengal at a profit of 40% on cost.

Solution:

Journal of Mahesh Chand, Bihar

Sl.no

2018

Particulars

L.F

Debit (₹)

Credit (₹)

March 1

Purchases A/c

Input IGST A/c

Dr.

Dr.

1,00,000

12,000

To Sunil Soren

(Goods purchased plus 12% IGST)

1,12,000

March 1

Deepak Patnaik

Dr.

1,68,000

To Sales A/c

To Output IGST A/c

(Goods sold plus 12% IGST)

1,50,000

18,000

Total

2,80,000

2,80,000

Journal of Sunil Soren, Jharkhand

Sl.no

2018

Particulars

L.F

Debit (₹)

Credit (₹)

March 1

Mahesh Chand

Dr.

1,12,000

To Sales A/c

To Output IGST A/c

(Goods sold plus 12% IGST)

1,00,000

12,000

Journal of Deepak Patnaik, Odisha

Sl.no

2018

Particulars

L.F

Debit (₹)

Credit (₹)

March 1

Purchases A/c

Input IGST A/c

Dr.

Dr.

1,50,000

18,000

To Mahesh Chand

(Goods purchased plus 12% IGST)

1,68,000

March 5

Suresh Yadav A/c

Dr.

2,01,600

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Sold goods plus 6% CGST and SGST each)

1,80,000

10,800

10,800

Total

3,69,600

3,69,600

Journal of Suresh Yadav, Odisha

Sl.no

2018

Particulars

L.F

Debit (₹)

Credit (₹)

March 5

Purchases A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

1,80,000

10,800

10,800

To Deepak Patnaik

(Goods purchased plus 12% IGST)

2,01,600

March 10

Ravi Chakravarti A/c

Dr.

2,80,000

To Sales A/c

To Output IGST A/c

(Sold goods plus 12% IGST)

2,50,000

30,000

Total

4,81,600

4,81,600

Journal of Ravi Chakravarti, West Bengal

Sl.no

2018

Particulars

L.F

Debit (₹)

Credit (₹)

March 10

Purchases A/c

Input IGST A/c

Dr.

Dr.

2,50,000

30,000

To Suresh Yadav

(Goods purchased plus 12% IGST)

2,80,000

March 14

Sanjay Diwedi

Dr.

3,92,000

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Sold goods costing ₹ 2,50,000 at 40% Profit plus 6% CGST and SGST each)

3,50,000

21,000

21,000

Total

6,72,000

6,72,000

Question 7

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

Particulars

1. Purchased goods from Karunakaran of Chennai for ₹ 1,00,000. (IGST @18%)

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

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

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

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

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

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

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

9. Payment made of balance amount of GST

Solution:

Sl.no

Particulars

L.F

Debit (₹)

Credit (₹)

1

Purchases A/c

Input IGST A/c

Dr.

Dr.

1,00,000

18,000

To Karunakaran A/c

(Goods purchased on credit)

1,18,000

2

Ganeshan A/c

Dr.

1,68,000

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Sold goods on credit)

1,50,000

9,000

9,000

3

S. Nair A/c

Dr.

3,06,800

To Sales A/c

To Output IGST A/c

(Sold goods on credit)

2,60,000

46,800

4

Machinery A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

80,000

7,200

7,200

To Bank A/c

(Motorbike purchased against cheque)

94,400

5

Rent A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

30,000

1,800

1,800

To Bank A/c

(Rent paid by cheque)

33,600

6

Purchases A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

2,00,000

12,000

12,000

To Ram Mohan Rai A/c

(Goods purchased on credit)

2,24,000

7

Insurance Premium A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

10,000

900

900

To Bank A/c

(Insurance premium paid by cheque)

11,800

8

Bank A/c

Dr.

23,600

To Commission A/c

To Output CGST A/c

To Output SGST A/c

(Commission received and deposited in bank)

20,000

1,800

1,800

9

Output IGST A/c

Dr.

18,000

To Input IGST A/c

(Input tax credit availed)

18,000

10

Output CGST A/c

Output SGST A/c

Dr.

Dr.

10,800

10,800

To Input CGST A/c

To Input IGST A/c

(Input tax credit availed)

10,800

10,800

11

Output IGST A/c

Dr.

28,800

To Input SGST A/c

To Input IGST A/c

To Bank A/c

11,100

11,100

6,600

10,48,600

10,48,600

Question 8

Prepare a book for all the parties mentioned below assuming CGST and SGST 9% each.

2018

April 5

April 7

April 15

April 20

Goods sold by manufacturer Anu of Delhi to a dealer Biraj of Delhi for ₹50,000

Sold goods by Biraj to Chandan of Punjab for ₹1,20,000

Sold goods by Chandan to Deepa of Punjab for ₹1,50,000

Sold goods by Deepa to Eila of Maharashtra for ₹1,50,000 at a profit of 33 ½% on cost.

Solution:

Journal For Anu

Date

Particular

L.F

Amount Dr.

Amount Cr.

2018

April 5

Biraj Dr.

To Sales A/c

To Output CGST A/c

To Output SGST A/c

59,000

50,000

4,500

4,500

Journal For Biraj

Date

Particular

L.F

Amount Dr.

Amount Cr.

2018

April 5

Purchase A/c Dr.

Input CGST A/c Dr.

Input SGST A/c Dr.

To Anu

(Goods purchased within the same state)

50,000

4,500

4,500

59,000

April 7

Chandan Dr.

To Sales A/c

To Output IGST A/c

(Goods sold outside the state)

1,41,000

1,20,000

21,600

Journal For Chandan

Date

Particular

L.F

Amount Dr.

Amount Cr.

2018

April 7

Purchase A/c Dr.

Input IGST A/c

To Biraj

(Goods purchased from outside the state)

1,20,000

21,000

1,41,600

April 15

Deepa Dr.

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Goods sold within the same state)

1,77,000

1,50,000

13,500

13,500

Journal For Deepa

Date

Particular

L.F

Amount Dr.

Amount Cr.

2018

April 15

Purchase A/c Dr.

Input CGST A/c

Input SGST A/c

To Chandra

(Goods purchased within the same state)

1,50,000

13,500

13,500

1,77,000

April 20

Eila Dr.

To Sales A/c

To Output IGST A/c

(Goods sold outside the state costing ₹1,50,000 at a profit of 33 ½% on cost)

2,36,000

2,00,000

36,000

Journal For Eile

Date

Particular

L.F

Amount Dr.

Amount Cr.

2018

April 5

Purchase A/c Dr.

Input IGST A/c Dr.

To Deepa

(Goods purchased from outside the state)

2,00,000

36,000

2,36,000

Question 9

Pass entries in the books of Ashok Bros. assuming that all transactions have been entered within Delhi and assuming CGST @6% and SGST @ 6%.

2018

Jan 2

5

10

20

22

31

Purchased goods for ₹2,00,000

Sold goods for ₹3,00,000 on credit

Purchased computer printer for office for ₹50,000 and payment made by cheque

Paid legal consultation fee ₹10,000

Paid rent ₹20,000 by cheque

Payment made of the balance amount of GST

Solution:

Journal of Ashok Bros.

Date

Particular

L.F

Amount Dr.

Amount Cr.

2018

Jan 2

Purchase A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

2,00,000

12,000

12,000

To Creditor A/c

(Purchase of goods on credit)

2,24,000

Jan 5

Debtors A/c

Dr.

3,36,000

To Sales A/c

To Output CGST A/c

To Output SGST A/c

(Sales of goods on credit)

3,00,000

18,000

18,000

Jan 10

Office Equipment A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

50,000

3,000

3,000

To Bank A/c

(Purchased computer printer)

56,000

Jan 20

Office Equipment A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

10,000

600

600

To Cash A/c

(Paid legal consultation fee)

11,200

Jan 22

Rent A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

20,000

1,200

1,200

To Bank A/c

(Paid rent)

22,400

Jan 31

Output CGST A/c (working note)

Output SGST A/c

Dr.

Dr.

18,000

18,000

To Input CGST A/c

To Input SGST A/c

To Bank A/c (₹1,200 + ₹1,200)

(Adjustment of GST and payment of balance amount)

16,800

16,800

2,400

Total ₹

6,85,600

6,85,600

The above-provided solutions are considered to be the best solution for ‘DK Goel Solutions Accountancy Class 11 Chapter 10 – “ Accounting for Goods and Service Tax (GST)”. Stay tuned for updated Class 11 accountancy solutions.

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