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Gst adjustment entry

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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?/
Replies (1)
you have not considered complete data. so you should consider cash which is received on account of sales. i.e. CGST and SGST.
then you can get clear picture.


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