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Goods of ₹5000 out of good purchased within the state were taken by him for personal use.Prepare journal entry with 6% G.Yes.T?
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Goods of ₹5000 out of good purchased within the state were taken by hi...
Journal Entry for Goods taken for Personal Use within the State:
Explanation:
- When goods worth ₹5000 are taken for personal use out of the goods purchased within the state, it is considered a withdrawal of goods for personal use.
- This transaction needs to be recorded in the accounting books to maintain accurate records of the company.
- The journal entry will include the amount of goods withdrawn and the applicable Goods and Services Tax (GST).
Journal Entry:
- Debit: Drawings Account - ₹5000
- Credit: Goods and Services Tax Account - ₹300 (6% of ₹5000)
- Credit: Input Tax Credit Account - ₹300
Explanation:
- The Drawings Account is debited to reflect the withdrawal of goods for personal use worth ₹5000.
- The Goods and Services Tax Account is credited with the GST amount of ₹300 at a rate of 6%.
- The Input Tax Credit Account is also credited with the same amount of ₹300, as it is the GST paid on goods used for personal purposes.
This journal entry ensures that the withdrawal of goods for personal use is properly accounted for in the company's books, along with the corresponding GST implications.
Explanation:
- When goods worth ₹5000 are taken for personal use out of the goods purchased within the state, it is considered a withdrawal of goods for personal use.
- This transaction needs to be recorded in the accounting books to maintain accurate records of the company.
- The journal entry will include the amount of goods withdrawn and the applicable Goods and Services Tax (GST).
Journal Entry:
- Debit: Drawings Account - ₹5000
- Credit: Goods and Services Tax Account - ₹300 (6% of ₹5000)
- Credit: Input Tax Credit Account - ₹300
Explanation:
- The Drawings Account is debited to reflect the withdrawal of goods for personal use worth ₹5000.
- The Goods and Services Tax Account is credited with the GST amount of ₹300 at a rate of 6%.
- The Input Tax Credit Account is also credited with the same amount of ₹300, as it is the GST paid on goods used for personal purposes.
This journal entry ensures that the withdrawal of goods for personal use is properly accounted for in the company's books, along with the corresponding GST implications.
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Goods of ₹5000 out of good purchased within the state were taken by him for personal use.Prepare journal entry with 6% G.Yes.T?
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Goods of ₹5000 out of good purchased within the state were taken by him for personal use.Prepare journal entry with 6% G.Yes.T? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Goods of ₹5000 out of good purchased within the state were taken by him for personal use.Prepare journal entry with 6% G.Yes.T? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods of ₹5000 out of good purchased within the state were taken by him for personal use.Prepare journal entry with 6% G.Yes.T?.
Goods of ₹5000 out of good purchased within the state were taken by him for personal use.Prepare journal entry with 6% G.Yes.T? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Goods of ₹5000 out of good purchased within the state were taken by him for personal use.Prepare journal entry with 6% G.Yes.T? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods of ₹5000 out of good purchased within the state were taken by him for personal use.Prepare journal entry with 6% G.Yes.T?.
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