Question

Manish sold goods to Kumar for ₹ 10,000 plus CGST and SGST @ 9% each. He received ₹ 1,800 in cash and drew on him a bill for ₹ 10,000 payable 3 months after date. Kumar accepted the bill and returned it to Manish. On due date, Manish presented the bill to Kumar who honoured it.
Pass Journal entries in the books of both the parties.

Answer 1

Books of Manish
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Kumar	Dr.		11,800
	To Sales A/c To Output CGST A/c To Output SGST A/c				10,000 900 900
	(Goods sold to Kumar plus CGST and SGST @ 9% each)
	Bills Receivable A/c Cash A/c	Dr. Dr.		10,000 1,800
	To Kumar				11,800
	(Kumar accepted the bill and Paid GST in cash)
	Cash A/c	Dr.		10,000
	To Bills Receivable A/c				10,000
	(Bill honoured on maturity)

Books of Kumar
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Purchases A/c Input CGST A/c Input SGST A/c	Dr. Dr. Dr.		10,000 900 900
	To Manish				11,800
	(Goods bought from Manish plus CGST and SGST @ 9% each)
	Manish	Dr.		11,800
	To Bills Payable A/c To Cash A/c				10,000 1,800
	(Bill drawn by Manish accepted and GST paid in cash)
	Bills Payable A/c	Dr.		10,000
	To Cash A/c				10,000
	(Acceptance discharged by paying in Cash)