Accounting for Goods and Service Tax (GST) — Account STD 11 Commerce — Question

Pass entries in the books of Krishnan of Bengaluru (Karnataka) in the following cases:

1.	Purchased goods from Karunakaran of Chennai for ₹ 1,00,000. (IGST @18%)
2.	Sold goods to Ganeshan of Bengaluru for ₹ 1,50,000. (CGST @ 6% and SGST @ 6%)
3.	Sold goods to S. Nair of Kerala for ₹ 2,60,000. (IGST @18%)
4.	Purchased a Machinery for ₹ 80,000 from Surya Ltd. against cheque. (CGST @ 9% and SGST @ 9%)
5.	Paid rent ₹ 30,000 by cheque. (CGST @ 6% and SGST @ 6%)
6.	Purchased goods from Ram Mohan Rai of Bengaluru for ₹ 2,00,000. (CGST @ 6% and SGST @ 6%)
7.	Paid insurance premium ₹ 10,000 by cheque. (CGST @ 9% and SGST @ 9%)
8.	Received commission ₹ 20,000 by cheque which is deposited into bank. (CGST @ 9% and SGST @ 9%)
9.	Payment made of balance amount of GST.

Pass entries in the books of Ganguli & Sons. assuming all transactions have been entered in the state of West Bengal:

1.	Purchased goods for ₹ 2,00,000 and payment made by cheque.
2.	Sold goods for ₹ 1,60,000 to Devki Nandan & Sons.
3.	Purchased goods for ₹ 50,000 on credit.
4.	Paid for printing and stationery ₹ 4,000.
5.	Received for commission ₹ 5,000.
6.	Output GST adjusted against Input GST.

Assume CGST @ 6% and SGST @ 6%.

State two demerits of Reducing Instalment Method of providing depreciation.

Classify the following into (i) Assets (ii) Liabilities (iii) Expenses and (iv) Revenues
Sales, Bank balance, Debtors, Bank Overdraft, Creditors, Salary to the manager,Discount to debtors, Cost of goods sold

Elucidate the following statement:
Cash Book is both Journal and Ledger'.

What are ‘Books of Original Entry'?

Shri S. K. Gupta, Chandigarh commenced business on 1st April, 2019 with a capital of ₹ 1,20,000 of which ₹ 60,000 was paid into his Bank Account and balance retained as cash. His other transactions during the month were as follows:

2019		₹
April 2	Bought office furniture	20,000
April 5	Purchased goods	16,000
April 8	Purchased goods from Ramesh, Chandigarh	11,000
April 12	Sold goods to Sameer, Delhi	21,000
April 13	Purchased stationery for cash	1,800
April 13	Paid to Ramesh in cash on account*	10,000
	Discount allowed by him*1,000
April 17	Withdrawn cash for office use*	4,000
April 18	Sen of Chandigarh sold goods to S.K. Gupta	30,000
April 19	Cash received from Sameer on account*	20,000
	Allowed him discount*	1,000
April 20	Sold to Raj Banwari, Delhi	40,000
April 28	Cash sales	1,400
April 30	Paid salary by cheque*	8,000
April 30	Paid rent by cheque	5,000
April 30	Paid telephone expenses by cheque	2,000
April 30	Paid cash into bank*	2,000

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Journalise the above transactions and post them to the Ledger.

Give four examples each of ‘provision’ and ‘reserves’.

What is Double-Entry System? Explain its principles and advantages.

Give the performa of a Bill of Exchange.