Question No 02 Chapter No 8

Question No 02 Chapter No 8

Purchase Book

2. M/s Ram Narain & Sons of Kerala, who are dealers in readymade garments, purchased the following :-

2017 
May.5Purchased from Fashion House, Mumbai Maharashtra:-
 100 Shirts @ 1,800 per Shirt
 75 T-shirts @ 1,600 per piece
 Less: Trade Discount 20%; and freight charges payable 10,000.
May.10Purchased from Appolo Garments, Kerala:-
 65 Shirts @ 2,000 per piece
 80 T-shirts @ 1,500 per piece
 Less: 20% Trade Discount and freight charges payable 2,000.
May.15Purchased from Garden Furniture House, Kolkata
 12 Chairs @ 5,000 per Chair
Jun.25Purchased from Amitabh Shirts, New Delhi for cash:-
 120 Shirts @ 1,500 per Shirt

Prepare Purchase Book assuming CGST @ 9% and SGST @ 9%.

The Content covered in this article:

The solution of Question No 02 Chapter No 8: –

 Purchases Book 
DateParticularDetailCost
Input CGSTInput SGST Input
ISGT
 
Total
2018
May
       
2Fashion House, Mumbai Maharashtra      
 100 Shirts @ Rs 1,800 per Shirt1,80,000     
 75 T-Shirts @ Rs 1,600 per piece1,20,000     
  3,00,000     
 Less: Trade Discount @ 20 %6,000     
  2,40,000     
 Add: 18% IGST43,200     
  2,83,2002,40,000  43,2002,83,200
10Appolo Garments, Kerala      
 65 Shirts @ Rs 2,000 per piece1,30,000     
 80 T-Shirts @ Rs 1,500 per piece1,20,000     
  2,50,000     
 Less: Trade Discount @20%50,000     
  90,000     
 Add: CGST18,000     
 Add: SGST18,000     
  2,36,0002,00,00018,00018,000 2,36,000
   4,40,00018,00018,00043,2005,19,200

Working Note:-

1. In Purchases Book, we record only the credit purchase of goods, so transaction dated May 15 being the purchase of Furniture on credit and May 25 being the purchase of goods for cash will not be recorded

2. A separate entry will be passed in Journal Proper for Freight Charges payable on May 02, 2017, and May 10, 2017. Assuming GST rate is 18%, the following are the entries:

DateParticulars
L.F.DebitCredit
May. 02Freight Inwards A/cDr. 10,000 
 Input IGST A/cDr. 1,800 
 To Fashion House   11,800
 (Being Freight charge pointer−state purchase of goods @18)   
     
May.10Freight Inwards A/cDr. 2,000 
 Input CGST A/cDr. 180 
 Input SGST A/cDr. 180 
 To Subhash’s A/c   2,360
 (Being Freight charge sonintra −statepurchaseofgoods@9)   
     

 

Purchase Book | Types | Examples | Subsidiary Books

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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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