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DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Short Answer QuestionQ. 1 What is GST?Answer: Goods and services tax (GST) is a tax imposed indirectly on the goods and services supply.Q.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.Q. 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.Q.4 Give two advantages of GST.Answer: The two advantages of GST are a) decreases the cost of goods and b) reduces tax invasion.Q.5 What is the full form of CGST?Answer: The full form of CGST is Central Goods and Services Tax.Q.6 What is the full form of SGST?Answer: The full form of SGST is State Goods and Services Tax.Q.7 What is the full form of IGST?Answer: The full form of IGST is Integrated Goods and Services Tax.Q.8 What is CGST?Answer: CGST is a tax imposed on supplies of goods and services within the state-imposed by the centralgovernment and administered by the CGST Act.Q.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 issupervised by the IGST Act.
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Practical QuestionQ.1 Pass entries in the books of Mukherjee & Sons. assuming all transactions have taken place within thestate of Uttar Pradesh. Assume CGST @9% and SGST @ 9%.2018ParticularsMarch 01Bought goods for 5,00,000 from Mehta Bros.04Goods sold for 8,00,000 to Munjal & Co.15Paid for advertisement 40,000 by cheque.18Bought furniture for office use 50,000 and payment made by cheque.25Paid for printing and stationery 8,000.31Payment of the balance amount of GST.The solution for this question is as follows:DateParticularsL.FDebit ( )Purchases A/cDr.5,00,000Input CGST A/cDr.45,000Input SGST A/cDr.45,000To Mehta Bros. A/cDr.Credit ( )2018March 015,90,000(Bought goods from Mehta bros.)04Munjal & Co. A/c.9,44,000To Sales A/c8,00,000To Output CGST A/c72,000To Output SGST A/c72,000(Goods sold to Munjal & Co.)15Advertisement A/cDr.40,000Input CGST A/cDr.3,600Input SGST A/Dr.3,600To Bank A/c47,200
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)(Advertisement payment)18Furniture A/cDr.50,000Input CGST A/cDr.4,500Input SGST A/cDr.4,500To Bank A/c59,000(Bought furniture for office)25Printing & Stationery A/c8,000Input CGST A/c720Input SGST A/c720To Cash A/c9,440Stationery and printing payment)31Output CGST A/c53,820Output SGST A/c53,820To Input CGST A/c53,820To Input SGST A/c53,820(Availed Input tax credit)31Output CGST A/c18,180Output CGST A/c18,180To Bank A/c36,360(Payment of balance tax to government)17,93,64017,93,640
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Q.2 Pass entries in the books of Devdhar & Bros. Odisha, assuming all transactions have been enteredwithin the state, charging CGST and SGST @ 9% each.2018ParticularsMarch 04Purchased goods for 5,00,000 from Sunil Bros.07Goods returned to Sunil Bros. for 20,000.10Sold goods to Mehta & Co. for 8,00,000.12Goods returned by Mehta & Co. for 30,000.20Goods withdrawn by Proprietor for personal use 10,000.25Goods distributed as free samples 5,000.26Paid advertisement expenses by cheque 20,000.31Payment made of balance amount.The solution for this question is as follows:DateParticularsL.FDebit ( )Purchases A/cDr.5,00,000Input CGST A/cDr.45,000Input SGST A/cDr.45,000Credit ( )2018March 045,90,000To Sunil Bros. A/c(Bought from Sunil Bros.)07Sunil Bros. A/cDr.23,600To Purchases Return A/c20,000To Input CGST A/c1,800To Input SGST A/c1,800(Returned goods to Sunil Bros.)10Mehta& Co. A/cDr.9,44,000To Sales A/c8,00,000To Output CGST A/c72,00072,000
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)To Output SGST A/c(Goods sold to Mehta& Co.)12Sales Return A/cDr.30,000Output CGST A/cDr.2,700Output SGST A/cDr.2,70035,400To Mehta & Co. A/c(Returned goods by Mehta & Co.)20Drawings A/cDr.11,800To Purchases Return A/c10,000To Input CGST A/c900To Input SGST A/c900(Withdrawn goods for personal use)25Free Samples A/cDr.5,900To Purchases Return A/c5,000To Input CGST A/c450To Input SGST A/c450(Distributed goods as free samples)26Advertisement A/cDr.20,000To Input CGST A/cDr.1,800To Input SGST A/cDr.1,800To Bank A/c23,600(Advertisement payment)31Output CGST A/cDr.43,650Output SGST A/cDr.43,650To Input CGST A/c43,650To Input SGST A/c43,650(Availed Input tax credit)31Output CGST A/cDr.25,650
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Output SGST A/cDr.25,650To Bank A/c25,650(Payment of balance tax to government)17,72,90017,72,900Q.3 Record the following transactions in the books of Sahdev & Sons assuming all transactions havebeen entered within the state of Bihar, Charging CGST and SGST @ 9% each.Particulars1. Bought goods from Nanak Bros. for 4,00,000 at 10% trade discount and 3% cash discount on thepurchase 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 saleprice. 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.The solution for this question is as follows:Sl.noParticularsL.FDebit ( )Purchases A/cDr.3,60,000Input CGST A/cDr.32,400Input SGST A/cDr.32,400Credit ( )To Cash A/c1,03,014To Nanak Bros. A/c3,18,600To Discount Received A/c3,186(Goods purchased)Kumar & Sons A/cDr.75,520Bank A/cDr.1,07,616Discount Allowed A/cDr.5,664
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)To Sales A/c1,60,000To Output CGST A/c14,400To Output SGST A/c14,400(Goods Sold)Bank A/cDr.38,000Discount Allowed A/cDr.2,000To Gopi Chand A/c40,000(Received full settlement from Gopi Chand)Rent A/cDr.20,000Input CGST A/cDr.1,800Input SGST A/cDr.1,80023,600To Bank A/c(Paid for rent)Salaries A/cDr.50,00050,000To Bank A/c(Paid salaries)Advertisement A/cDr.11,800To Purchases A/c10,000To Input CGST A/c900To Input SGST A/c900(Goods distributed as free samples)Bad Debts A/cDr.5,000To Chanderkant A/c5,000(Debtor proved bad)Cash A/cDr.15,000To Capital A/c15,000(Invested money into business)7,59,0007,59,000
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Q.4 Pass entries in the books of Mr. Roopani of Gujarat assuming CGST @ 9% and SGST@ 9%.Particulars1. 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 sentto 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.The solution for this question is as follows:Sl.noParticularsL.FDebit( )1Purchases A/cDr.2,00,000Input IGST A/cDr.36,000To Suryakant’s A/cCredit( )2,36,000(Goods purchased on credit)2Bank A/cDr.1,77,000To Sales A/c1,50,000To Output IGST A/c27,000(Sold Goods)3Debtors A/cDr.2,95,000To Sales A/c2,50,000To Output CGST A/c22,500To Output SGST A/c22,500(Sold goods on credit)4Insurance Premium A/cDr.20,000Input CGST A/cDr.1,800Input SGST A/cDr.1,800
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)To Bank A/c23,600(Insurance premium payment)5Office Furniture A/cDr.60,000Input CGST A/cDr.5,400Input SGST A/cDr.5,40070,800To Bank A/c(Bought office furniture)6Output IGST A/cDr.27,00027,000To Input IGST A/c(Availed Input Tax credit up to Rs.27,000 and balance to be adjustedagainst Output CGST)7Output CGST A/cDr.22,500To Input CGST A/c7,200To Input SGST A/c9,000To Bank A/c6,300(Availed Input tax credit and paid balance)8Output SGST A/cDr.22,500To Input SGST A/c7,200To Bank A/c15,300(Availed Input tax credit availed and paid balance)8,74,4008,74,400
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Working Note:Procedure for GST Common Set Off:Input IGSTOutput IGST ( )Output CGST ( )Output SGST ( 00-9000)Input CGST–(1800 5400)Input SGST–––7,200(1800 5400)PayableNil6,30015,300Q.5 Pass entries in the books of Sh. Jagdish Mishra of Lucknow (U.P.) assuming CGST @ 6% and SGST@ 6%.MarchParticulars5Purchased goods for 2,50,000 from Virender Yadav of Patna (Bihar).12Sold goods costing 60,000 at 50% profit to Partap Sinha of Ranchi.14Purchased goods for 70,000 from Ram Nath of Kanpur against cheque.18Sold goods at Varanasi (U.P.) Costing 2,25,000 at 33½% profit less trade discount 10% againstcheque which was deposited into the bank.2031Paid rent 25,000 by cheque.Payment made of balance amount of GST.The solution for this question is as follows:
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Sl.noParticularsL.FDebit ( )5Purchases A/cDr.2,50,000Input IGST A/cDr.30,000To Virender Yadav A/cCredit ( )2,80,000(Purchased goods on credit)12Pratap Sinha A/cDr.1,00,800To Sales A/c90,000To Output IGST A/c10,800(Goods Sold on credit)14Purchases A/cDr.70,000Input CGST A/cDr.Dr.4,200Input SGST A/c4,200To Bank A/c78,400(Goods bought against cheque)18Bank A/cDr.3,02,400To Sales A/c2,70,000To Output CGST A/c16,200To Output SGST A/c16,200(Goods sold against cheque)20Rent A/cDr.25,000Input CGST A/c1,500Input SGST A/c1,500To Bank A/c28,000(Rent paid by cheque)31Output IGST A/cDr.10,800To Input IGST A/c10,800(Availed input tax credit)31Output CGST A/cDr.16,200
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)To Input CGST A/c5,700To Input IGST A/c10,500To Bank A/c(Availed input tax credit)31Output SGST A/cDr.16,200To Input SGST A/c5,700To Input IGST A/c8,700To Bank A/c1,800(Availed input tax credit and paid balance)8,32,8008,32,800Q.6 Pass entries in the books of all parties in the following cases assuming CGST @ 6% and SGST @ 6%.MarchParticulars1Mahesh Chandra of Bihar purchased goods for 1,00,000 from Sunil Soren of Jharkhand andsold the same to Deepak Patnaik of Odisha for 1,50,000.51014Deepak 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 Dwivedi of West Bengal at a profit of40% on cost.Solution:Journal of Mahesh Chand, BiharSl.noParticularsL.FDebit ( )Purchases A/cDr.1,00,000Input IGST A/cDr.12,000Credit ( )2018March 11,12,000To Sunil Soren(Goods purchased plus 12% IGST)March 1Deepak PatnaikDr.1,68,000
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)To Sales A/c1,50,000To Output IGST A/c18,000(Goods sold plus 12% IGST)Total2,80,0002,80,000Journal of Sunil Soren, JharkhandSl.noParticularsL.FDebit ( )Mahesh ChandDr.1,12,000Credit ( )2018March 1To Sales A/c1,00,000To Output IGST A/c12,000(Goods sold plus 12% IGST)Journal of Deepak Patnaik, OdishaSl.noParticularsL.FDebit ( )Purchases A/cDr.1,50,000Input IGST A/cDr.18,000Credit ( )2018March 11,68,000To Mahesh Chand(Goods purchased plus 12% IGST)March 5Suresh Yadav A/cDr.2,01,600To Sales A/c1,80,000To Output CGST A/c10,800To Output SGST A/c10,800(Sold goods plus 6% CGST and SGST each)Total3,69,6003,69,600
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Journal of Suresh Yadav, OdishaSl.noParticularsL.FDebit ( )Purchases A/cDr.1,80,000Input CGST A/cDr.10,800Input SGST A/cDr.10,800Credit ( )2018March 5To Deepak Patnaik2,01,600(Goods purchased plus 12% IGST)March 10Ravi Chakravarti A/cDr.2,80,000To Sales A/c2,50,000To Output IGST A/c30,000(Sold goods plus 12% IGST)Total4,81,6004,81,600Journal of Ravi Chakravarti, West BengalSl.noParticularsL.FDebit( )Purchases A/cDr.2,50,000Input IGST A/cDr.30,0002018March10To Suresh YadavCredit( )2,80,000(Goods purchased plus 12% IGST)March14Sanjay DwivediDr.3,92,000To Sales A/c3,50,000To Output CGST A/c21,000To Output SGST A/c21,000
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)(Sold goods costing 2,50,000 at 40% Profit plus 6% CGST andSGST each)Total6,72,0006,72,000Q.7 Pass entries in the books of Krishnan of Bengaluru (Karnataka) in the following cases:Particulars1. 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 GSTThe solution for this question is as follows:Sl.noParticularsL.FDebit ( )1Purchases A/cDr.1,00,000Input IGST A/cDr.18,000To Karunakaran A/cCredit ( )1,18,000(Goods purchased on credit)2Ganesan A/cDr.1,68,000To Sales A/c1,50,000To Output CGST A/c9,000To Output SGST A/c9,000(Sold goods on credit)3S. Nair A/cDr.3,06,800
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)To Sales A/c2,60,000To Output IGST A/c46,800(Sold goods on credit)4Machinery A/cDr.80,000Input CGST A/cDr.7,200Input SGST A/cDr.7,200To Bank A/c94,400(Motorbike purchased against cheque)5Rent A/cDr.30,000Input CGST A/cDr.1,800Input SGST A/cDr.1,80033,600To Bank A/c(Rent paid by cheque)6Purchases A/cDr.2,00,000Input CGST A/cDr.12,000Input SGST A/cDr.12,000To Ram Mohan Rai A/c2,24,000(Goods purchased on credit)7Insurance Premium A/cDr.10,000Input CGST A/cDr.900Input SGST A/cDr.900To Bank A/c11,800(Insurance premium paid by cheque)8Bank A/cDr.23,600To Commission A/c20,000To Output CGST A/c1,800To Output SGST A/c1,800(Commission received and deposited in bank)
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)9Output IGST A/cDr.18,000To Input IGST A/c18,000(Input tax credit availed)10Output CGST A/cDr.10,800Output SGST A/cDr.10,800To Input CGST A/c10,800To Input IGST A/c10,800(Input tax credit availed)11Output IGST A/cDr.28,800To Input SGST A/c11,100To Input IGST A/c11,100To Bank A/c6,60010,48,60010,48,600Q. 8 Prepare a book for all the parties mentioned below assuming CGST and SGST 9% each.2018April 5Goods sold by manufacturer Anu of Delhi to a dealer Biraj of Delhi for 50,000April 7Sold goods by Biraj to Chandan of Punjab for 1,20,000April 15Sold goods by Chandan to Deepa of Punjab for 1,50,000April 20Sold goods by Deepa to Eila of Maharashtra for 1,50,000 at a profit of 33 ½% on cost.The solution for this question is as follows:
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Journal for AnuDateParticularL.FAmount Dr.Amount Cr. 59,00050,0002018Biraj Dr.April 5To Sales A/c4,500To Output CGST A/c4,500To Output SGST A/cJournal for BirajDateParticularL.FAmount Dr.Amount Cr. 59,0002018Purchase A/c Dr.50,000April 5Input CGST A/c Dr.4,500Input SGST A/c Dr.4,500To Anu(Goods purchased within the same state)April 7Chandan Dr.To Sales A/cTo Output IGST A/c(Goods sold outside the state)1,41,0001,20,00021,600
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Journal for ChandanDateParticularL.FAmount Dr.Amount Cr. 1,41,6002018Purchase A/c Dr.1,20,000April 7Input IGST A/c21,000To Biraj(Goods purchased from outside the state)April15Deepa Dr.1,77,0001,50,000To Sales A/c13,500To Output CGST A/c13,500To Output SGST A/c(Goods sold within the same state)Journal for DeepaDateParticularL.FAmountDr.AmountCr. 1,77,0002018Purchase A/c Dr.1,50,000April15Input CGST A/c13,500Input SGST A/c13,500To Chandra(Goods purchased within the same state)April20Eila Dr.To Sales A/cTo Output IGST A/c(Goods sold outside the state costing 1,50,000 at a profit of33 ½% on cost)2,36,0002,00,00036,000
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)Journal for EileDateParticularL.FAmount Dr.Amount Cr. 2,36,0002018Purchase A/c Dr.2,00,000April 5Input IGST A/c Dr.36,000To Deepa(Goods purchased from outside the state)Q. 9 Pass entries in the books of Ashok Bros. assuming that all transactions have been entered withinDelhi and assuming CGST @6% and SGST @ 6%.2018Jan 2Purchased goods for 2,00,0005Sold goods for 3,00,000 on credit10Purchased computer printer for office for 50,000 and payment made by cheque20Paid legal consultation fee 10,00022Paid rent 20,000 by cheque31Payment made of the balance amount of GSTThe solution for this question is as follows:Journal of Ashok Bros.DateParticularL.FAmount Dr.Amount Cr. 2018Purchase A/cDr.2,00,000Jan 2Input CGST A/cDr.12,000Input SGST A/cDr.12,000To Creditor A/c2,24,000(Purchase of goods on credit)Jan 5Debtors A/cDr.3,36,000
DK Goel Solutions for Class 11 Accountancy Chapter 10Accounting for Goods and Service Tax (GST)To Sales A/c3,00,000To Output CGST A/c18,000To Output SGST A/c18,000(Sales of goods on credit)Jan 10Office Equipment A/cDr.50,000Input CGST A/cDr.3,000Input SGST A/cDr.3,000To Bank A/c56,000(Purchased computer printer)Jan 20Office Equipment A/cDr.10,000Input CGST A/cDr.600Input SGST A/cDr.600To Cash A/c11,200(Paid legal consultation fee)Jan 22Rent A/cDr.20,000Input CGST A/cDr.1,200Input SGST A/cDr.1,20022,400To Bank A/c(Paid rent)Jan 31Output CGST A/c (working note)Dr.18,000Output SGST A/cDr.18,000To Input CGST A/c16,800To Input SGST A/c16,800To Bank A/c ( 1,200 1,200)2,400(Adjustment of GST and payment of balance amount)Total 6,85,6006,85,600
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. The solution for this question is as follows: 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
