Question

A sold goods to B for ₹ 20,000 plus CGST and SGST @ 9% each on credit 3 months. B paid A ₹ 3,600 by cheque and accepted a draft for the balance amount. The draft was endorsed in favour of C, who got the payment on maturity.
Give Journal entries in the books of A.

Answer 1

Books of A
Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	B	Dr.		23,600
	To Sales A/c To Output CGST A/c To Output SGST A/c				20,000 1,800 1,800
	(Goods sold to B plus CGST and SGST @ 9% each)
	Bills Receivable A/c Bank A/c	Dr. Dr.		20,000 3,600
	To B				23,600
	(B accepted the bill and paid GST by cheque)
	C	Dr.		20,000
	To Bills Receivable A/c				20,000
	(B’s acceptance endorsed in favour of C)