GST Practitioner & Accounts
14929 Points
Joined March 2014
I will give you practical example , Computer Costing is Rs 50000/- +GST @ 18 % = 59000( total cost) was purchase from the supplier out of 59000/- Advance payment Rs 20000/- was made and balance payment Rs 39000/- was made later on when we received Computer and Invoice.
Advance to Supplier A/c Dr 20000/-
To Bank A/c Cr 20000/-
( Advance payment to the supplier)
Advance to Supplier A/c Asset side Balance sheet.
When he send computer along with Invoice pass entry
Computer A/c Dr 50000/-
Input CGST A/c Dr 4500/-
Input SGST A/c Dr. 4500/-
To Supplier A/c Cr. 59000/-
( Invoice booking entry)
Payment entry
Supplier A/c Dr c. 59000/-
To Advance to supplier A/c Cr 20000/-
To Bank A/c Cr 39000/-
( Balance payment made after adjusting advance payment)