cst accouting treatment

Others 3163 views 3 replies

wat is the accounting treatment for cst purchases and sales ...whether cst paid on purchase can be clubbed up with purcahses and the entire amount along with cst amount can be debited to purchases

Replies (3)

 

yes in CST purchase the entire amount including CST paid on purchse is debited to the Purchase reason being that we cannot take credit of this amount so we treat it as a part of direct expenses & debited to the Purchases A/c,

However in case of CST sales we account the CST paid in seprate A/c reason being that this amount is our liablity & which will be settled by paying the CST amount to the department.

Thanks & Regard

Raman Gora

Yes, Mr. Raman is right

 

1) Purchase A/c.........dr.     104

         To Creditor A/c                        104

---------------------------------------------------------

2) Debtor A/c.............Dr.     208

         To Sales                              200

          To CST                                 8   

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