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 Amrit, Delhi A/c 23,800 (Being goods purchased from M/s Luxor Pens Ltd. )

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 it.

Transaction No. 1

 Name of Account Type of Account Rule which will Applicable What happen in the transaction Rule applied According to Rule It will be Purchase (Goods) Assets Real Account Goods received by business Goods comes in Debit CGST Input A/c Expenses Nominal Account Tax collected from buyer All Expenses and losses Debit SGST Input A/c Expenses Nominal Account Tax collected from buyer All Expenses and losses Debit Amrit . Person Personal Account Goods given He is  Giver Credit

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