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.5 Purchased 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.10 Purchased 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.15 Purchased from Garden Furniture House, Kolkata 12 Chairs @ 5,000 per Chair Jun.25 Purchased from Amitabh Shirts, New Delhi for cash:- 120 Shirts @ 1,500 per Shirt

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

## The solution of Question No 02 Chapter No 8: –

 Purchases Book Date Particular Detail Cost Input CGST Input SGST InputISGT Total 2018May 2 Fashion House, Mumbai Maharashtra 100 Shirts @ Rs 1,800 per Shirt 1,80,000 75 T-Shirts @ Rs 1,600 per piece 1,20,000 3,00,000 Less: Trade Discount @ 20 % 6,000 2,40,000 Add: 18% IGST 43,200 2,83,200 2,40,000 43,200 2,83,200 10 Appolo Garments, Kerala 65 Shirts @ Rs 2,000 per piece 1,30,000 80 T-Shirts @ Rs 1,500 per piece 1,20,000 2,50,000 Less: Trade Discount @20% 50,000 90,000 Add: CGST 18,000 Add: SGST 18,000 2,36,000 2,00,000 18,000 18,000 2,36,000 4,40,000 18,000 18,000 43,200 5,19,200

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:

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

Purchase Book | Types | Examples | Subsidiary Books

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