accountant
40 Points
Joined June 2018
let us assume,
cgst collected 2000
sgst collectes 2000
then,
sgst paid 1000
cgst paid 1000
i have made a sample entry as follow
sgst collected a/c dr 2000
cgst collected a/c dr 2000
to sgst paid a/c 1000
to cgst paid a/c 1000
to gst payable 2000
is this entry right? how do u calculate this with accounting equation(asset=liability+equity) as per this entry both cgst paid and collected were liabilities and gst payable is also liability account my question is how do they equalise with accounting equation? i assume that cgst and sgst paid entries are contra liability(which is decrese liability value) so i need to know how to apply accounting equation for this entry?/