Chapter 4 GST Entries

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We know that Purchase Entry is of form
Purchase Dr
To Party

When Payment is Made to party, entry will be
Party Dr
To Bank
(Party is a Liability ,which decreases on making payment, so we debit it
Bank is an asset which decreases, so we credit it)

Normally First Goods Purchased, then Payment Made
So entry is

Purchase Dr
To Party

Party Dr
To Bank

So entry will be

Party Dr
To Bank

Purchase Dr
To Party

So entry will be

Party Dr  20000
To Bank            20000

Purchase Dr 100000
To Party                 100000

Party Dr    80000
To Bank               80000

Similarly entries with GST will be as follows

Note

Lets take the following example-

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### Transcript

Purchase Local 5% Input CGST 2.5% 100000 2500 First Purchase then Payment Input SGST 2.5% To Party 2500 105000 20% Payment in Advance, then purchase, Then Balance Payment First Payment in Advance then Purchase Party To Bank 105000 105000 Party To Bank 105000 105000 Purchase Local 5% Input CGST 2.5% 100000 2500 Input SGST 2.5% To Party 2500 105000 Party To Bank 21000 21000 Purchase Local 5% Input CGST 2.5% 100000 2500 Input SGST 2.5% To Party 2500 105000 Party To Bank 84000 84000 Purchase and Payment Entries with GST Suppose Purchase is of 100000+% GST Purchase Local 5% Input CGST 2.5% 100000 2500 20% Payment in Advance, then Purchase, Then Balance Payment Input SGST 2.5% To Party 2500 105000 20000 Payment in Advance, then Purchase, Then Balance Payment Party To Bank 21000 21000 Party To Bank 84000 84000 Purchase Local 5% Input CGST 2.5% 100000 2500 Input SGST 2.5% To Party 2500 105000 Party To Bank 20000 20000 Party To Bank 85000 85000 Comparision