Cash dr 2446400
to sales 2184285
to output cgst. 131057
to output sgst. 131058

Cash Sales Including CGST and SGST

Entry for Cash Sales Including CGST and SGST

To record the cash sales including CGST and SGST at 6%, the following entry will be made in the cash book:

Account Title Debit Credit
CGST A/c 1,44,400
SGST A/c 1,44,400
Sales A/c 21,57,600
Cash A/c 24,46,400

Explanation

To understand the entry for cash sales including CGST and SGST, let's break it down into its components:

1. CGST A/c (Central Goods and Services Tax Account):
- CGST is a tax levied on the intra-state supply of goods and services.
- The CGST A/c is debited with the amount of CGST collected on the cash sales.
- In this case, the CGST amount is 6% of the total cash sales, which is 1,44,400 (6% of 24,46,400).

2. SGST A/c (State Goods and Services Tax Account):
- SGST is a tax levied by the state government on the intra-state supply of goods and services.
- The SGST A/c is debited with the amount of SGST collected on the cash sales.
- In this case, the SGST amount is also 6% of the total cash sales, which is 1,44,400 (6% of 24,46,400).

3. Sales A/c:
- Sales A/c is credited with the total amount of cash sales made.
- In this case, the total cash sales amount is 24,46,400.

4. Cash A/c:
- Cash A/c is credited with the total amount of cash received from the sales.
- In this case, the cash received from the sales is 24,46,400.

Summary

The entry for cash sales including CGST and SGST is recorded by debiting CGST A/c and SGST A/c with the respective tax amounts (6% of the total cash sales) and crediting Sales A/c and Cash A/c with the total cash sales amount and cash received, respectively. This entry ensures that the tax collected on the cash sales is properly accounted for and the sales revenue is recorded accurately.