Commerce Exam  >  Commerce Notes  >  DK Goel Solutions: Accounting for Goods and Service Tax (GST)

DK Goel Solutions: Accounting for Goods and Service Tax (GST) - Commerce PDF Download

Download, print and study this document offline
Please wait while the PDF view is loading
 Page 1


 
 
 
 
r 10 
 
 
Short Answer Question 
Q. 1 What is GST? 
Answer: Goods and services tax (GST) is a tax imposed indirectly on the goods and services supply. 
Q.2 Name the two central taxes that have merged into GST. 
Answer: The two central taxes that have merged into GST are excise duty and customs duty. 
Q. 3 Name the two-state taxes that have merged into GST. 
Answer: The two-state taxes that have merged into GST are purchase tax and VAT. 
Q.4 Give two advantages of GST. 
Answer: The two advantages of GST are a) decreases the cost of goods and b) reduces tax invasion. 
Q.5 What is the full form of CGST? 
Answer: The full form of CGST is Central Goods and Services Tax. 
Q.6 What is the full form of SGST? 
Answer: The full form of SGST is State Goods and Services Tax. 
Q.7 What is the full form of IGST? 
Answer: The full form of IGST is Integrated Goods and Services Tax. 
Q.8 What is CGST? 
Answer: CGST is a tax imposed on supplies of goods and services within the state-imposed by the central 
government and administered by the CGST Act. 
Q.9 What is IGST? 
Answer: IGST is a tax imposed on all Inter-state supplies of both import and export of goods and services and is 
supervised by the IGST Act. 
 
 
 
 
 
 
 
 
Page 2


 
 
 
 
r 10 
 
 
Short Answer Question 
Q. 1 What is GST? 
Answer: Goods and services tax (GST) is a tax imposed indirectly on the goods and services supply. 
Q.2 Name the two central taxes that have merged into GST. 
Answer: The two central taxes that have merged into GST are excise duty and customs duty. 
Q. 3 Name the two-state taxes that have merged into GST. 
Answer: The two-state taxes that have merged into GST are purchase tax and VAT. 
Q.4 Give two advantages of GST. 
Answer: The two advantages of GST are a) decreases the cost of goods and b) reduces tax invasion. 
Q.5 What is the full form of CGST? 
Answer: The full form of CGST is Central Goods and Services Tax. 
Q.6 What is the full form of SGST? 
Answer: The full form of SGST is State Goods and Services Tax. 
Q.7 What is the full form of IGST? 
Answer: The full form of IGST is Integrated Goods and Services Tax. 
Q.8 What is CGST? 
Answer: CGST is a tax imposed on supplies of goods and services within the state-imposed by the central 
government and administered by the CGST Act. 
Q.9 What is IGST? 
Answer: IGST is a tax imposed on all Inter-state supplies of both import and export of goods and services and is 
supervised by the IGST Act. 
 
 
 
 
 
 
 
 
 
 
 
 
r 10 
 
Practical Question 
Q.1 Pass entries in the books of Mukherjee & Sons. assuming all transactions have taken place within the 
state of Uttar Pradesh. Assume CGST @9% and SGST @ 9%. 
2018 Particulars 
March 01 
04 
15 
18 
25 
31 
Bought goods for ? 5,00,000 from Mehta Bros. 
Goods sold for ? 8,00,000 to Munjal & Co. 
Paid for advertisement ? 40,000 by cheque. 
Bought furniture for office use ? 50,000 and payment made by cheque. 
Paid for printing and stationery ? 8,000. 
Payment of the balance amount of GST. 
 
The solution for this question is as follows: 
 
Date 
2018 
Particulars L.F Debit (?) Credit (?) 
March 01 Purchases A/c 
Input CGST A/c 
Input SGST A/c 
Dr. 
Dr. 
Dr. 
5,00,000 
45,000 
45,000 
 
 
To Mehta Bros. A/c 
(Bought goods from Mehta bros.) 
Dr. 
 
5,90,000 
04 Munjal & Co. A/c . 9,44,000 
 
 
To Sales A/c 
To Output CGST A/c 
To Output SGST A/c 
(Goods sold to Munjal & Co.) 
  
8,00,000 
72,000 
72,000 
15 Advertisement A/c 
Input CGST A/c 
Input SGST A/ 
Dr. 
Dr. 
Dr. 
40,000 
3,600 
3,600 
 
 
To Bank A/c 
  
47,200 
Page 3


 
 
 
 
r 10 
 
 
Short Answer Question 
Q. 1 What is GST? 
Answer: Goods and services tax (GST) is a tax imposed indirectly on the goods and services supply. 
Q.2 Name the two central taxes that have merged into GST. 
Answer: The two central taxes that have merged into GST are excise duty and customs duty. 
Q. 3 Name the two-state taxes that have merged into GST. 
Answer: The two-state taxes that have merged into GST are purchase tax and VAT. 
Q.4 Give two advantages of GST. 
Answer: The two advantages of GST are a) decreases the cost of goods and b) reduces tax invasion. 
Q.5 What is the full form of CGST? 
Answer: The full form of CGST is Central Goods and Services Tax. 
Q.6 What is the full form of SGST? 
Answer: The full form of SGST is State Goods and Services Tax. 
Q.7 What is the full form of IGST? 
Answer: The full form of IGST is Integrated Goods and Services Tax. 
Q.8 What is CGST? 
Answer: CGST is a tax imposed on supplies of goods and services within the state-imposed by the central 
government and administered by the CGST Act. 
Q.9 What is IGST? 
Answer: IGST is a tax imposed on all Inter-state supplies of both import and export of goods and services and is 
supervised by the IGST Act. 
 
 
 
 
 
 
 
 
 
 
 
 
r 10 
 
Practical Question 
Q.1 Pass entries in the books of Mukherjee & Sons. assuming all transactions have taken place within the 
state of Uttar Pradesh. Assume CGST @9% and SGST @ 9%. 
2018 Particulars 
March 01 
04 
15 
18 
25 
31 
Bought goods for ? 5,00,000 from Mehta Bros. 
Goods sold for ? 8,00,000 to Munjal & Co. 
Paid for advertisement ? 40,000 by cheque. 
Bought furniture for office use ? 50,000 and payment made by cheque. 
Paid for printing and stationery ? 8,000. 
Payment of the balance amount of GST. 
 
The solution for this question is as follows: 
 
Date 
2018 
Particulars L.F Debit (?) Credit (?) 
March 01 Purchases A/c 
Input CGST A/c 
Input SGST A/c 
Dr. 
Dr. 
Dr. 
5,00,000 
45,000 
45,000 
 
 
To Mehta Bros. A/c 
(Bought goods from Mehta bros.) 
Dr. 
 
5,90,000 
04 Munjal & Co. A/c . 9,44,000 
 
 
To Sales A/c 
To Output CGST A/c 
To Output SGST A/c 
(Goods sold to Munjal & Co.) 
  
8,00,000 
72,000 
72,000 
15 Advertisement A/c 
Input CGST A/c 
Input SGST A/ 
Dr. 
Dr. 
Dr. 
40,000 
3,600 
3,600 
 
 
To Bank A/c 
  
47,200 
 
 
 
 
 
(Advertisement payment) 
18 Furniture A/c 
Input CGST A/c 
Input SGST A/c 
Dr. 
Dr. 
Dr. 
50,000 
4,500 
4,500 
 
 
To Bank A/c 
(Bought furniture for office) 
  
59,000 
25 Printing & Stationery A/c 
Input CGST A/c 
Input SGST A/c 
 
8,000 
720 
720 
 
 
To Cash A/c 
Stationery and printing payment) 
  
9,440 
31 Output CGST A/c 
Output SGST A/c 
 
53,820 
53,820 
 
 
To Input CGST A/c 
To Input SGST A/c 
(Availed Input tax credit) 
  
53,820 
53,820 
31 Output CGST A/c 
Output CGST A/c 
 
18,180 
18,180 
 
 
To Bank A/c 
(Payment of balance tax to government) 
  
36,360 
   
17,93,640 17,93,640 
 
 
 
 
 
 
Page 4


 
 
 
 
r 10 
 
 
Short Answer Question 
Q. 1 What is GST? 
Answer: Goods and services tax (GST) is a tax imposed indirectly on the goods and services supply. 
Q.2 Name the two central taxes that have merged into GST. 
Answer: The two central taxes that have merged into GST are excise duty and customs duty. 
Q. 3 Name the two-state taxes that have merged into GST. 
Answer: The two-state taxes that have merged into GST are purchase tax and VAT. 
Q.4 Give two advantages of GST. 
Answer: The two advantages of GST are a) decreases the cost of goods and b) reduces tax invasion. 
Q.5 What is the full form of CGST? 
Answer: The full form of CGST is Central Goods and Services Tax. 
Q.6 What is the full form of SGST? 
Answer: The full form of SGST is State Goods and Services Tax. 
Q.7 What is the full form of IGST? 
Answer: The full form of IGST is Integrated Goods and Services Tax. 
Q.8 What is CGST? 
Answer: CGST is a tax imposed on supplies of goods and services within the state-imposed by the central 
government and administered by the CGST Act. 
Q.9 What is IGST? 
Answer: IGST is a tax imposed on all Inter-state supplies of both import and export of goods and services and is 
supervised by the IGST Act. 
 
 
 
 
 
 
 
 
 
 
 
 
r 10 
 
Practical Question 
Q.1 Pass entries in the books of Mukherjee & Sons. assuming all transactions have taken place within the 
state of Uttar Pradesh. Assume CGST @9% and SGST @ 9%. 
2018 Particulars 
March 01 
04 
15 
18 
25 
31 
Bought goods for ? 5,00,000 from Mehta Bros. 
Goods sold for ? 8,00,000 to Munjal & Co. 
Paid for advertisement ? 40,000 by cheque. 
Bought furniture for office use ? 50,000 and payment made by cheque. 
Paid for printing and stationery ? 8,000. 
Payment of the balance amount of GST. 
 
The solution for this question is as follows: 
 
Date 
2018 
Particulars L.F Debit (?) Credit (?) 
March 01 Purchases A/c 
Input CGST A/c 
Input SGST A/c 
Dr. 
Dr. 
Dr. 
5,00,000 
45,000 
45,000 
 
 
To Mehta Bros. A/c 
(Bought goods from Mehta bros.) 
Dr. 
 
5,90,000 
04 Munjal & Co. A/c . 9,44,000 
 
 
To Sales A/c 
To Output CGST A/c 
To Output SGST A/c 
(Goods sold to Munjal & Co.) 
  
8,00,000 
72,000 
72,000 
15 Advertisement A/c 
Input CGST A/c 
Input SGST A/ 
Dr. 
Dr. 
Dr. 
40,000 
3,600 
3,600 
 
 
To Bank A/c 
  
47,200 
 
 
 
 
 
(Advertisement payment) 
18 Furniture A/c 
Input CGST A/c 
Input SGST A/c 
Dr. 
Dr. 
Dr. 
50,000 
4,500 
4,500 
 
 
To Bank A/c 
(Bought furniture for office) 
  
59,000 
25 Printing & Stationery A/c 
Input CGST A/c 
Input SGST A/c 
 
8,000 
720 
720 
 
 
To Cash A/c 
Stationery and printing payment) 
  
9,440 
31 Output CGST A/c 
Output SGST A/c 
 
53,820 
53,820 
 
 
To Input CGST A/c 
To Input SGST A/c 
(Availed Input tax credit) 
  
53,820 
53,820 
31 Output CGST A/c 
Output CGST A/c 
 
18,180 
18,180 
 
 
To Bank A/c 
(Payment of balance tax to government) 
  
36,360 
   
17,93,640 17,93,640 
 
 
 
 
 
 
 
 
 
 
 
Q.2 Pass entries in the books of Devdhar & Bros. Odisha, assuming all transactions have been entered 
within the state, charging CGST and SGST @ 9% each. 
2018 Particulars 
March 04 
07 
10 
12 
20 
25 
26 
31 
Purchased goods for ? 5,00,000 from Sunil Bros. 
Goods returned to Sunil Bros. for ? 20,000. 
Sold goods to Mehta & Co. for ? 8,00,000. 
Goods returned by Mehta & Co. for ? 30,000. 
Goods withdrawn by Proprietor for personal use ? 10,000. 
Goods distributed as free samples ? 5,000. 
Paid advertisement expenses by cheque ?20,000. 
Payment made of balance amount. 
 
The solution for this question is as follows: 
 
Date 
2018 
Particulars L.F Debit (?) Credit (?) 
March 04 Purchases A/c 
Input CGST A/c 
Input SGST A/c 
Dr. 
Dr. 
Dr. 
5,00,000 
45,000 
45,000 
 
 
To Sunil Bros. A/c 
(Bought from Sunil Bros.) 
  
5,90,000 
07 Sunil Bros. A/c Dr. 23,600 
 
 
To Purchases Return A/c 
To Input CGST A/c 
To Input SGST A/c 
(Returned goods to Sunil Bros.) 
  
20,000 
1,800 
1,800 
10 Mehta& Co. A/c Dr. 9,44,000 
 
 
To Sales A/c 
To Output CGST A/c 
  
8,00,000 
72,000 
72,000 
Page 5


 
 
 
 
r 10 
 
 
Short Answer Question 
Q. 1 What is GST? 
Answer: Goods and services tax (GST) is a tax imposed indirectly on the goods and services supply. 
Q.2 Name the two central taxes that have merged into GST. 
Answer: The two central taxes that have merged into GST are excise duty and customs duty. 
Q. 3 Name the two-state taxes that have merged into GST. 
Answer: The two-state taxes that have merged into GST are purchase tax and VAT. 
Q.4 Give two advantages of GST. 
Answer: The two advantages of GST are a) decreases the cost of goods and b) reduces tax invasion. 
Q.5 What is the full form of CGST? 
Answer: The full form of CGST is Central Goods and Services Tax. 
Q.6 What is the full form of SGST? 
Answer: The full form of SGST is State Goods and Services Tax. 
Q.7 What is the full form of IGST? 
Answer: The full form of IGST is Integrated Goods and Services Tax. 
Q.8 What is CGST? 
Answer: CGST is a tax imposed on supplies of goods and services within the state-imposed by the central 
government and administered by the CGST Act. 
Q.9 What is IGST? 
Answer: IGST is a tax imposed on all Inter-state supplies of both import and export of goods and services and is 
supervised by the IGST Act. 
 
 
 
 
 
 
 
 
 
 
 
 
r 10 
 
Practical Question 
Q.1 Pass entries in the books of Mukherjee & Sons. assuming all transactions have taken place within the 
state of Uttar Pradesh. Assume CGST @9% and SGST @ 9%. 
2018 Particulars 
March 01 
04 
15 
18 
25 
31 
Bought goods for ? 5,00,000 from Mehta Bros. 
Goods sold for ? 8,00,000 to Munjal & Co. 
Paid for advertisement ? 40,000 by cheque. 
Bought furniture for office use ? 50,000 and payment made by cheque. 
Paid for printing and stationery ? 8,000. 
Payment of the balance amount of GST. 
 
The solution for this question is as follows: 
 
Date 
2018 
Particulars L.F Debit (?) Credit (?) 
March 01 Purchases A/c 
Input CGST A/c 
Input SGST A/c 
Dr. 
Dr. 
Dr. 
5,00,000 
45,000 
45,000 
 
 
To Mehta Bros. A/c 
(Bought goods from Mehta bros.) 
Dr. 
 
5,90,000 
04 Munjal & Co. A/c . 9,44,000 
 
 
To Sales A/c 
To Output CGST A/c 
To Output SGST A/c 
(Goods sold to Munjal & Co.) 
  
8,00,000 
72,000 
72,000 
15 Advertisement A/c 
Input CGST A/c 
Input SGST A/ 
Dr. 
Dr. 
Dr. 
40,000 
3,600 
3,600 
 
 
To Bank A/c 
  
47,200 
 
 
 
 
 
(Advertisement payment) 
18 Furniture A/c 
Input CGST A/c 
Input SGST A/c 
Dr. 
Dr. 
Dr. 
50,000 
4,500 
4,500 
 
 
To Bank A/c 
(Bought furniture for office) 
  
59,000 
25 Printing & Stationery A/c 
Input CGST A/c 
Input SGST A/c 
 
8,000 
720 
720 
 
 
To Cash A/c 
Stationery and printing payment) 
  
9,440 
31 Output CGST A/c 
Output SGST A/c 
 
53,820 
53,820 
 
 
To Input CGST A/c 
To Input SGST A/c 
(Availed Input tax credit) 
  
53,820 
53,820 
31 Output CGST A/c 
Output CGST A/c 
 
18,180 
18,180 
 
 
To Bank A/c 
(Payment of balance tax to government) 
  
36,360 
   
17,93,640 17,93,640 
 
 
 
 
 
 
 
 
 
 
 
Q.2 Pass entries in the books of Devdhar & Bros. Odisha, assuming all transactions have been entered 
within the state, charging CGST and SGST @ 9% each. 
2018 Particulars 
March 04 
07 
10 
12 
20 
25 
26 
31 
Purchased goods for ? 5,00,000 from Sunil Bros. 
Goods returned to Sunil Bros. for ? 20,000. 
Sold goods to Mehta & Co. for ? 8,00,000. 
Goods returned by Mehta & Co. for ? 30,000. 
Goods withdrawn by Proprietor for personal use ? 10,000. 
Goods distributed as free samples ? 5,000. 
Paid advertisement expenses by cheque ?20,000. 
Payment made of balance amount. 
 
The solution for this question is as follows: 
 
Date 
2018 
Particulars L.F Debit (?) Credit (?) 
March 04 Purchases A/c 
Input CGST A/c 
Input SGST A/c 
Dr. 
Dr. 
Dr. 
5,00,000 
45,000 
45,000 
 
 
To Sunil Bros. A/c 
(Bought from Sunil Bros.) 
  
5,90,000 
07 Sunil Bros. A/c Dr. 23,600 
 
 
To Purchases Return A/c 
To Input CGST A/c 
To Input SGST A/c 
(Returned goods to Sunil Bros.) 
  
20,000 
1,800 
1,800 
10 Mehta& Co. A/c Dr. 9,44,000 
 
 
To Sales A/c 
To Output CGST A/c 
  
8,00,000 
72,000 
72,000 
 
 
 
 
 
To Output SGST A/c 
(Goods sold to Mehta& Co.) 
12 Sales Return A/c 
Output CGST A/c 
Output SGST A/c 
Dr. 
Dr. 
Dr. 
30,000 
2,700 
2,700 
 
 
To Mehta & Co. A/c 
(Returned goods by Mehta & Co.) 
  
35,400 
20 Drawings A/c Dr. 11,800 
 
 
To Purchases Return A/c 
To Input CGST A/c 
To Input SGST A/c 
(Withdrawn goods for personal use) 
  
10,000 
900 
900 
25 Free Samples A/c Dr. 5,900 
 
 
To Purchases Return A/c 
To Input CGST A/c 
To Input SGST A/c 
(Distributed goods as free samples) 
  
5,000 
450 
450 
26 Advertisement A/c 
To Input CGST A/c 
To Input SGST A/c 
Dr. 
Dr. 
Dr. 
20,000 
1,800 
1,800 
 
 
To Bank A/c 
(Advertisement payment) 
  
23,600 
31 Output CGST A/c 
Output SGST A/c 
Dr. 
Dr. 
43,650 
43,650 
 
 
To Input CGST A/c 
To Input SGST A/c 
(Availed Input tax credit) 
  
43,650 
43,650 
31 Output CGST A/c Dr. 25,650 
 
Read More

Top Courses for Commerce

Download as PDF
Explore Courses for Commerce exam

Top Courses for Commerce

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Summary

,

Sample Paper

,

Objective type Questions

,

mock tests for examination

,

Viva Questions

,

Important questions

,

pdf

,

MCQs

,

practice quizzes

,

ppt

,

Free

,

Extra Questions

,

Semester Notes

,

shortcuts and tricks

,

Previous Year Questions with Solutions

,

DK Goel Solutions: Accounting for Goods and Service Tax (GST) - Commerce

,

study material

,

DK Goel Solutions: Accounting for Goods and Service Tax (GST) - Commerce

,

past year papers

,

Exam

,

video lectures

,

DK Goel Solutions: Accounting for Goods and Service Tax (GST) - Commerce

;