Pass the journal entry for the following?
ABC Ltd purchase goods from XYZ on credit of Rs. 50,000 (18% GST is applicable) and term of agreement is if ABC pay the amount within 20 days of the purchase, than 10% discount is available. ABC makes the payment to XYZ before next day of purchase and the Goods movement within the state.
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Journal Entries
Replies (2)
As per section 15 sub section (3)(a) of CGST act 2017 value of supply shall not be include any discount
So 50000- 5000 =45000 (10% discount given on 50000)
Value of supply 45000
J.E will be
Purchase A/c Dr 45000
CGST A/c Dr 4050
SGST a/C dR 4050
To Sundry Creditors 53100
( Being purchase of -----)
Payment entry
Sundry Creditors A/c Dr 53100
To Bank A/c Cr 53100
Being payment made after 10% discount )
I have corrected above entry for your reference .
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