Check sibling questions

We know that Sales entry is

Party Dr

To Sales

Explanation-Sales is an Income, all Incomes are Credited

Party is Sundry Debtor, an Asset, when Asset Increases it is Debited

 

Same Entry with GST is

Sales Dr

To Party

To Output GST

Explanation-

We have to pay this GST, so it is liability for us. When liability increases it is credited.

 

Let’s learn about it with the help of an example

 

 

entries for sales.jpg


Transcript

B Dr To Sales 200000 200000 210000 200000 B Dr To Sales Interstate 5% To Output IGST 5% 10000 Sales Interstate Rs 200000 + 5% GST 210000 200000 B Dr To Sales Local 5% To Output SGST 2.5% 5000 Sales Local Rs 200000 + 5% GST 5000 To Output CGST 2.5% Entry for Sales Sales to B Rs 200000

Davneet Singh's photo - Teacher, Engineer, Marketer

Made by

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.