Page 148 - ISCDEBK-12

6.22 Double Entry Book Keeping (Section A)—ISC XII

Bank A/c ...Dr. 95,000
To Realisation A/c 95,000
(Being the Debtors realised)
Bank A/c ...Dr. 1,53,400
To Realisation A/c 1,30,000
To Output CGST A/c 11,700
To Output SGST A/c 11,700
(Being the machinery sold, CGST and SGST charged)
Realisation A/c ...Dr. 41,500
Bank A/c ...Dr. 6,750
To Output CGST A/c 3,375
To Output SGST A/c 3,375
To Bank A/c 41,500
(Being the furniture given to 50% of creditors at 25% less CGST and SGST
charged plus ` 10,000, Balance creditors paid at 10% Discount) (Note)
No entry for (iii) as both assets and liability are unrecorded
A’s Capital A/c ...Dr. 68,204
To Realisation A/c 57,800
To Output CGST A/c 5,202
To Output SGST A/c 5,202
(Being the computers taken by A, CGST and SGST charged)
Realisation A/c ...Dr. 50,000
To A’s Capital A/c 50,000
(Being the liability to pay Mrs. A’s loan assumed)
Realisation A/c ...Dr. 10,000
To Bank A/c 10,000
(Being the Workmen Compensation claim paid)
Realisation A/c ...Dr. 5,000
Input CGST A/c ...Dr. 450
Input SGST A/c ...Dr. 450
To B’s Capital A/c 5,900
(Being the realisation expenses along with CGST and SGST paid by B)
Output CGST A/c ...Dr. 20,277
To Input CGST A/c 450
To Bank A/c 19,827
(Being the output CGST deposited after setting off input CGST)
Output SGST A/c ...Dr. 20,277
To Input SGST A/c 450
To Bank A/c 19,827
(Being the output SGST deposited after setting off input SGST)
A’s Capital A/c ...Dr. 1,49,576
B’s Capital A/c ...Dr. 84,420
To Bank A/c 2,33,996
(Being the final payment to the partners)
Note: Half of creditors accepted furniture at 25% less means that creditors of ` 35,000 are settled by giving furniture
valued at ` 37,500 (i.e., ` 50,000 less 25%). Giving furniture to creditors means sale of furniture on which CGST and
SGST @ 9% each is charged.
Therefore, ` 3,375 each on account of CGST and SGST is recovered.