Question

Pass entries for the following transactions in the books of M/s Karthikeyan & Co. of Chennai:

2019
June 10	Purchased goods from Ravichandran of Madurai of the list price of ₹ 2,00,000 at 25% trade discount at 4% cash discount on purchase price of goods. Paid CGST and SGST @ 9% each. Paid the entire amount by cheque on the same date.
June 25	Sold goods to Ramalingam of Erode of the list price of ₹ 3,75,000 at 20% trade discount and 2% cash discount on sale price. Charged CGST and SGST @ 9% each. Full amount was received by cheque on the same date.

Ignore adjustment and payment of GST.

Answer 1

Journal In the books of M/s Karthikeyan & Co.
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
June 10	Purchases A/c	Dr.		1,50,000
	Input CGST A/c	Dr.		13,500
	Output SGST A/c	Dr.		13,500
	To Bank A/c				1,71,000
	To Discount received A/c				6,000
	(purchases from Ravichandaran @25% T.D. & 4% cash discount)
June 25	Bank A/c	Dr.		3,48,000
	Discount Allowed A/c	Dr.		6,000
	To Sales A/c				3,00,000
	To Output CGST A/c				27,000
	To Output SGST A/c				27,000
	(goods sold to Ramalingam @20% T.D. & 2% cash discount)
	TOTAL			5,31,000	5,31,000

Working Note:
(1) Calculation of the amount paid on purchases

List price of goods purchased			2,00,000
Less:	trade discount @ 25%		(50,000)
			1,50,000
Add:	Input CGST @ 9%	13,500
	Output SGST @ 9%	13,500	27,000
			1,77,000
Less:	Cash discount @ 4%		(6,000)
	Amount payable		1,71,000

(2) Calculation of the amount received on sales

List price of goods sold			3,75,000
Less:	trade discount @ 20%		(75,000)
			3,00,000
Add:	Input CGST @ 9%	27,000
	Output SGST @ 9%	27,000	54,000
			3,54,000
Less:	Cash discount @ 2%		(6,000)
	Amount payable		3,48,000