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Entries for Purchase with and without GST

Last updated at Feb. 17, 2021 by

We know that purchase entry is
Purchase Dr
To Party
Explanation-Purchase is an Expense ,all expenses are Debited
Party is Sundry Creditor, a Liability, when liability increase it is Credited
 
Same Entry with GST is
Purchase Dr
Input GST Dr
To Party
Explanation-We get ITC benefit of this GST, so it is like an asset for us
When asset increases,it is Debited)
 
Lets learn about it with the help of an example

 

Entry for Purchase.jpg

 

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Transcript

Purchase from A Rs 100000 Purchase Dr To A 100000 100000 100000 5000 Purchase Interstate 5% Dr Input IGST 5% Dr To A 105000 Purchase Interstate Rs 100000 + 5% GST 100000 2500 Purchase Local 5% Dr Input CGST 2.5% Dr To A 105000 Entry for Purchase Purchase Local Rs 100000 + 5% GST

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Davneet Singh

Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.