Entry for Sales and Advance Received with GST

Last updated at April 16, 2024 by

We know that Sales Entry is of form

Party Dr

To Sales

 

When Payment is received from party, entry will be

Bank Ac Dr

To Party

(Bank is an asset which increases, so we debit it

Party is an Asset, which decreases on making payment, so we credit it)

 

Normally First Goods Sold, then Payment Received

So, entry is

Party Dr

To Sales

 

Bank Dr

To Party

 

Sometimes Payment Made in Advance, then goods Sold

So, entry will be

Bank Dr

To Party

 

Party Dr

To Sales

 

Similarly, some amt Received in Advance, then goods Sold, then amt Received 

So, entry will be

Bank Dr 

To Party      

 

Party Dr

To Sales              

 

Bank Dr   

To Party        

 

Similarly entries with GST will be as follows

Sales and Advance.jpg

 

Note
30% Advance and 30000 Advance is different
 
Lets take the following example-

Comparision Sales.jpg

 

 

Transcript

B Dr To Sales Local 5% 210000 200000 First Sales 200000 + 5% GST then Amount Received To Output CGST 2.5% 5000 5000 First Amount Received in Advance Then Sales Bank Dr To B 210000 210000 Bank Dr To B 210000 210000 B Dr 210000 200000 To Output CGST 2.5% To Output SGST 2.5% 5000 5000 Bank Dr To B 63000 63000 B Dr To Sales 210000 200000 To Output CGST 2.5% TO Output SGST 2.5% 5000 5000 Bank Dr To B 147000 147000 To Output SGST 2.5% 30% Amount Received in Advance, Then Sales, Then Balance Received Sales and Amount Received Entries With GST To Sales Local 5% B Dr To Sales 5% Local 210000 200000 Comparison 30% Amount Received in Advance Then Sales Then Balance Received To Output CGST 2.5% To Output SGST 2.5% 5000 5000 30000 Amount Received in Advance Then Sales Then Balance Received Bank Dr To B 63000 63000 Bank Dr To B 147000 147000 B Dr To Sales 5% Local 210000 200000 To Output CGST 2.5% To Output SGST 2.5% 5000 5000 Bank Dr To B 60000 60000 Bank Dr To B 150000 150000

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.