We know that Asset entry is-
Asset Ac Dr
To Party
Explanation-We know that all Assets are Debited
Party is Sundry Creditor, a Liability, when liability increase it is Credited
 
 
 
Same Entry with GST is
Asset Ac 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 understand this with the help of an example
 
Asset Entries.png
 
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.