All Respected Members,
Please educate me on following:
1-What will be journal entry of advance receipt with GST ?
2-What will be journal entry of this advance adjustment when sale made in next month?
Thanks in advance for your precious time and efforts to reply this query.
Your Company received full Advance against sales order .
Advance receipt entry
Bank A/c Dr
To Advance (Sales Order) A/c Cr
To CGST A/c
To SGST A/c
( Advance received)
Advance A/c Liability side balance sheet.
Sales booking entry
Trade Debtors A/c Dr
To Sales A/c Cr.
To output CGST A/c Cr
To output SGST A/c Cr
( sales booking entry)
Advance adjustment entry
Advance ( sales order) A/c Dr
CGST A/c Dr
SGST A/c Dr.
To Trade Debtors A/c Cr
( Advance received adjusted)
Output CGST A/c Dr
Output SGST A/c Dr
To Bank A/c Cr
( payment of GST to Govt Account)
CAclubindia
