Question

M/s Ram Narain & Sons of Kerala, who are dealers in readymade garments, purchased the following :-

2017
May 2	Purchased from Fashion House, Mumbai (Maharashtra) :-
	100 Shirts @ ₹1,800 per Shirt
	75 T-shirts @ ₹ 1,600 per piece
	Less: Trade Discount 20%; and freight charges payable ₹ 10,000.
10	Purchased from Appolo Garments, Kerala :-
	65 Shirts @ ₹ 2,000 per piece
	80 T-shirts @ ₹ 1,500 per piece
	Less: 20% Trade Discount and freight charges payable ₹ 2,000.
May 15	Purchased from Garden Furniture House, Kolkata :-
	12 Chairs @ ₹ 5,000 per Chair
25	Purchased from Amitabh Shirts, New Delhi for cash :-
	120 Shirts @ ₹ 1,500 per Shirt

Prepare Purchase Book assuming CGST @ 9% and SGST @ 9%.

Answer 1

Purchases Book of M/s Ram Narain & Sons, Kerala
Date	Particulars	Invoice No.	L.F.	Details (₹)	Purchase (₹)	Input CGST (₹)	Input SGST (₹)	Input IGST (₹)	Total Amount (₹)
2017
May 02	Fashion House, Mumbai (Maharashtra)
	100 Shirts @ Rs 1,800 per Shirt			1,80,000
	75 T-Shirts @ Rs 1,600 per piece			1,20,000
				3,00,000
	Less: 20% Trade Discount			60,000
				2,40,000
	Add: 18% IGST			43,200
				2,83,200	2,40,000	–	–	43,200	2,83,200
May 10	Appolo Garments, Kerala
	65 Shirts @ Rs 2,000 per piece			1,30,000
	80 T-Shirts @ Rs 1,500 per piece			1,20,000
				2,50,000
	Less: 20% Trade Discount			50,000
				2,00,000
	Add: 9% CGST			18,000
	9% SGST			18,000
				2,36,000	2,00,000	18,000	18,000	–	2,36,000
					4,40,000	18,000	18,000	43,200	5,19,200

Working Notes

(1) In Purchases Book, we record only the credit purchase of goods, so transaction dated May 15 (being purchase of Furniture on credit) and May 25 (being purchase of goods for cash) will not be recorded.

(2) A separate entry will be passed in Journal Proper for Freight Charges payable on May 02, 2017 and May 10, 2017. Assuming GST rate is 18%, follwing are the entries:

Journal Proper
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2017
May 02	Freight Inwards A/c	Dr.		10,000
	Input IGST A/c	Dr.		1,800
	To Fashion House				11,800
	(Freight charges on inter-state purchase of goods @ 18% GST)
May 10	Freight Inwards A/c	Dr.		2,000
	Input CGST A/c	Dr.		180
	Input SGST A/c	Dr.		180
	To Appolo Garments				2,360
	(Freight charges on intra-state purchase of goods @ 9% GST)