Page 82 - debkxi

12.4 Double Entry Book Keeping—CBSE XI

3. Goods Taken by Proprietor (Owner) (a) If the Goods were purchased intra-state
for personal use Drawings A/c ...Dr.
Explanation: Input Credit taken at the To Purchases A/c
time of purchase of goods is cancelled, To Input CGST A/c
i.e., reversed. To Input SGST A/c
(b) If the Goods were purchased inter-state
Drawings A/c ...Dr.
To Purchases A/c
To Input IGST A/c
4. Goods Lost by Fire or Theft or Destroyed (a) If the Goods were purchased intra-state
Explanation: Input Credit taken at the Loss of Goods by Fire or Theft or Destroyed A/c ...Dr.
time of purchase of goods is cancelled, To Purchases A/c
i.e., reversed. To Input CGST A/c
To Input SGST A/c
(b) If the Goods were purchased inter-state
Loss of Goods by Fire or Theft or Destroyed A/c ...Dr.
To Purchases A/c
To Input IGST A/c
5. Goods becoming Not Saleable (a) If Goods and/or Services or Both were Purchased intra-state
Explanation: Goods will not be further Loss of Goods A/c ...Dr.
sold, i.e., GST will not be collected. Thus, To Purchases A/c
Input credit will not be allowed. To Input CGST A/c
To Input SGST A/c
(b) If Goods and/or Services or Both were Purchased inter-state
Loss of Goods A/c ...Dr.
To Purchases A/c
To Input IGST A/c
6. Goods Distributed Among Staff (a) If Goods and/or Services or Both were Purchased intra-state
Explanation: Goods will not be further Staff Welfare A/c ...Dr.
sold and hence GST will not be collected. To Purchases A/c
Since they are given free of cost, To Input CGST A/c
Input GST Credit will not be allowed. To Input SGST A/c
(b) If Goods and/or Services or Both were Purchased inter-state
Staff Welfare A/c ...Dr.
To Purchases A/c
To Input IGST A/c
7. Goods Given as Donation/Charity (a) If the Goods were purchased intra-state
Explanation: Input Credit taken at the Donation/Charity A/c ...Dr.
time of purchase of goods is cancelled, To Purchases A/c
i.e., reversed. GST Paid (CGST and SGST or To Input CGST A/c
IGST) is reversed because the goods are To Input SGST A/c
consumed by the business.
(b) If the Goods were purchased inter-state
Donation/Charity A/c ...Dr.
To Purchases A/c
To Input IGST A/c