Question 11 Chapter 5 – Unimax Publications of Class 11

Question 11 Chapter 5 – Unimax Publications of Class 11

11. Enter the following transactions in the books of Shriya Traders. Assume CGST @ 9%
May 1 Purchased goods for Rs. 9,00,000 from Abhi at 20% .
May 10 Sold goods Rs. 4,50,000 on cash.
May 20 Paid for advertisement Rs. 45,000 by cheque.
May 22 Sold goods for Rs. 1,50,000 and received a cheque.
May 25 Received commission Rs. 15,000
May 28 Purchased goods Rs. 1,50,000 C.D. @ 20%.
May 31 Payment made of balance amount of GST.

The solution of Question 11 Chapter 5 – Unimax Publications of Class 11:

JOURNAL OF SHRIYA TRADER

Date	Particulars		L.F.	Debit	Credit
2020
May 1	Purchases A/c	Dr.		7,20,000
	Input CGST A/c	Dr.		64,800
	Input SGST A/c	Dr.		64,800
	To Abhi A/c				8,49,600
	(Being goods purchased from Abhi) (WNI)
May 10	Cash A/c	Dr.		5,31,000
	To Sales A/c				4,50,000
	To Output CGST A/c				40,500
	To Output SGST A/c				40,500
	(Being goods sold for cash)
May 20	Advertisement A/c	Dr.		45,000
	Input CGST	Dr.		4,050
	Input SGST A/c	Dr.		4,050
	To Sales A/c				53,100
	(Being advertisement paid by cheque)
May 22	Bank A/c	Dr.		1,77,000
	To Bank A/c				1,50,000
	To Output CGST A/c				13,500
	To Output SGST A/c				13,500
	(Being goods sold by cheque)
May 25	Cash A/c	Dr.		17,700
	To Commission A/c				15,000
	To Output CGST A/c				1,350
	To Output SGST A/c				1,350
	(Being commission received)
May 28	Purchases A/c	Dr.		1,50,000
	Input CGST A/c	Dr.		13,500
	Input SGST A/c	Dr.		13,500
	To cash A/c				1,41,600
	To Discount received A/c				35,400
	(Being goods purchased at C.D) (WN II)
May 31	Output CGST A/c	Dr.		55,350
	Output SGST A/c	Dr.		55,350
	To Input CGST A/c				55,350
	To Input SGST A/c				55,350
	(Being G.S.T Adjusted)

Working Notes:

1.	List price of goods purchased	9,00,000
	Less: Trade discount @20%	1,80,000
		7,20,000
	Add: CGST@ 9%	64,800
	SGST@9%	64,800
		8,49,600
2.	List price of goods purchased	1,50,000
	Add: CGST@ 9%	13,500
	SGST@9%	13,500
		1,77,000
	Less: Cash discount@ 20%	35,400
		1,41,600
3.	Total Input CGST = Rs. 64,800+74,050 + 13,500 = Rs. 82,350
	Total Input SGST = Rs. 64,800+ 4,050+ 13,500 = Rs. 82,350
	Total Output CGST = Rs. 40,500 + 13,500 + 1,350 = Rs. 55,350
	Total Output SGST = Rs. 40,500 + 13,500 + 1,3350 = Rs. 55,350

Note: Since Input GST is more than Output GST, there is no tax liability to be paid to the Government. Excess of Input GST is called Input Tax credit. It will be carried forward and will be adjusted in the next year.