Question No 23 Chapter No 8 - T.S. Grewal 11 Class

Question No 23 Chapter No 8

Pass journal entry for purchase of goods by Amrit, Delhi from Ayur Products, Agra,(UP) for Rs 25,000 less trade discount@15% plus IGST @ 12%.

Solution of Question No 23 Chapter No 8: - 

Gross Purchase Price = 25,000/-

Trade Discount = Purchase Price * % of discount
= 25,000 * 15%
= 3,750/-

Net Purchase Price = Gross Purchase Price - Discount
= 25,000 – 3,750
= 21,250/-

Amount of IGST = Net Purchase Price * % of CGST
= 21,250* 12%
= 2,550/-

Invoice Value = Net Purchase Price + CGST + SGST
= 21,250+ 2,550
= 23,800/-

In the Books of Amrit, Delhi

Date	Particulars		L.F.	Debit	Credit
	Purchase A/c	Dr.		21,250
	Input IGST A/c	Dr.		2,550
	To Ayur Products, Agra,(UP) A/c				23,800
	(Being goods purchased from Ayur Products, Agra,(UP) )

Explanation of All Transactions with images: -

This is not a part of the solution, So you don't have to write it in the exam. So, why we explained if it is not needed. Because This explanation will help you to understand all transactions with logic and you don't need to remember all the transactions but just understand and remember the logic use behind them.

Transaction No. 1

Name of Account	Type of Account	Rule which will Applicable	What happens in the transaction	Rule applied	According to Rule It will be
Purchase (Goods)	Assets	Real Account	Goods received by business	Goods come in	Debit
CGST Input A/c	Expenses	Nominal Account	A tax collected from the buyer	All Expenses and losses	Debit
SGST Input A/c	Expenses	Nominal Account	A tax collected from the buyer	All Expenses and losses	Debit
Ayur Products, Agra,(UP)	Person	Personal Account	Goods given	He is  Giver	Credit

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