Page 84 - debkxi
P. 84

12.6                                                   Double Entry Book Keeping—CBSE XI

                      D.  Journal entries when Output GST is reversed, i.e., cancelled:

                       S.No.   Transaction and Explanation                Journal Entry
                        1.   Sales Return                (a)  For intra-state Credit Sale
                           Explanation: Output GST, i.e., GST Charged      Sales Return A/c          ...Dr.
                            on sale is cancelled, i.e., reversed. Goods      Output CGST A/c         ...Dr.
                            were sold within the state, i.e., Intra-state,      Output SGST A/c      ...Dr.
                            both CGST and SGST were charged and         To  Debtor’s A/c
                            credited to Output CGST Account and   (b)  For intra-state Cash Sale
                            Input SGST Account,  which now are      Sales Return A/c                 ...Dr.
                            reversed. Goods were sold outside the      Output CGST A/c               ...Dr.
                           state, i.e., Inter-state, IGST was charged      Output SGST A/c           ...Dr.
                            and credited to Output IGST Account,         To  Cash/Bank A/c
                            which now is reversed.
                                                         (c)  For inter-state Credit Sale
                                                            Sales Return A/c                         ...Dr.
                                                            Output IGST A/c                          ...Dr.
                                                              To  Debtor’s A/c
                                                         (d)  For inter-state Cash Sale
                                                            Sales Return A/c                         ...Dr.
                                                            Output IGST A/c                          ...Dr.
                                                              To  Cash/Bank A/c
                        2.   Cash Discount Allowed       (a)  If Goods and/or Services or Both were intra-state
                           Explanation: GST is levied on Taxable       Cash A/c/Bank A/c             ...Dr.
                            Value which is after all discounts including      Discount Allowed A/c   ...Dr.
                            Cash Discount.                                         [On amount of Cash Discount]
                                                            Output CGST A/c                          ...Dr.
                                                            Output SGST A/c                          ...Dr.
                                                              To  Sundry Debtors
                                                         (b)  If Goods and/or Services or Both were inter-state
                                                            Cash A/c/Bank A/c                        ...Dr.
                                                            Discount Allowed A/c                     ...Dr.
                                                                                   [On amount of Cash Discount]
                                                            Output IGST A/c                          ...Dr.
                                                              To  Sundry Debtors
                        3.   Rebate Allowed              (a)  If Goods and/or Services or Both are intra-state
                           Explanation: Rebate is reduction in Sale      Rebate A/c                  ...Dr.
                            Value allowed because of reasons other       Output CGST A/c             ...Dr.
                            than for which Trade Discount is allowed.      Output SGST A/c           ...Dr.
                                                                              [GST is reversed on amount of Rebate]
                                                              To  Sundry Debtors
                                                         (b)  If Goods and/or Services or Both are inter-state
                                                            Rebate A/c                               ...Dr.
                                                            Output IGST A/c                          ...Dr.
                                                                              [GST is reversed on amount of Rebate]
                                                              To  Sundry Debtors
   79   80   81   82   83   84   85   86   87   88   89