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.
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 )
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