Articles related with Micro Economics, Macro economics Accountancy and Business studies useful for XI, XII, CS foundation, CA(CPT), BBA ,, and for other readers.


Thursday, 9 August 2018

How to write reverse GST journal entry

There are some following cases where GST that you have paid is allowed to be reversed.

  1. when Goods are destroyed accidenetally e.g. loss by fire , embezzlement or earthquake.
  2. when you return goods.
  3. when goods are returned to you 
  4. When proprietor withdraw goods for personal use.

For example, if you purchased goods amounting Rs 10000 and also paid 6℅CGST and 6℅ SGST then journal entry will be recorded as:

            Purchase A/c   10000     
            Input CGST       600        
            Input SGST.      600         
                        To Bank           11200

Now if proprietor withdraw goods costing 5000 Rs then journal entry will be recorded as:

            Drawing  A/c   dr   5600
                  To purchase A/c          5000
                  To Input CGST              300
                  To Input SGST.              300

Input CGST and Input SGST is reversed in above entry with Rs 300 each according to 6℅ tax on Rs 5000. 

If u like this post then follow us.

No comments:

Post a Comment

We welcome your valuable comment.