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Assignment
Solve the following entries in case of services
CASE 1
First Bill Issued then Amt Received
SALES 100000 + 18000 GST ON 19 AUG TO A LTD
PAYMENT RECEIVED ON 24 OCT.
PASS ENTRIES
View Answer19/08/2016
A LTD Dr. 118000
TO SERVICES A/C 100000
TO OUTPUT CGST 9% 9000
TO OUTPUT SGST 9% 9000
24/10/2016
BANK A/C Dr. 118000
A LTD 118000
CASE 2
Payment Received in Advance
SALES 100000 + 18000 GST ON 19 AUG TO A LTD
WHOLE PAYMENT RECEIVED IN ADVANCE ON 24 JULY.
PASS ENTRIES
View Answer24/07/2016
BANK A/C Dr. 118000
To A LTD 118000
31/07/2016
For Creating Tax Liabilities For Advance
TAX ON ADVANCE Dr. 18000
To OUTPUT CGST 9% 9000
To OUTPUT SGST 9% 9000
Go to Accounting Voucher (journal) --->Stat Adjustment--->Nature of Adjustment --->Increase in liabilities --->additional details --->On Account of Advance receipt
19/08/2016
A LTD Dr. 118000
TO SERVICES A/C 100000
TO OUTPUT CGST 9% 9000
TO OUTPUT SGST 9% 9000
31/08/2016
Adjustment on tax paid in advance
OUTPUT CGST 9% 9000
OUTPUT SGST 9% 9000
TO TAX ON ADVANCE 18000
Go to Accounting Voucher (journal) --> Stat Adjustment --> Nature of Adjustment --> Decrease in liabilities --> additional details --> On Account of Advance receipt -->Sales Against Advance Receipt
CASE 3
Partial Payment Received in Advance
SALES 100000 + 18000 GST ON 19 AUG TO A LTD
30% PAYMENT RECD ON 24 JULY.
BALANCE ON 24 OCT
PASS ENTRIES
View Answer24/07/2016
BANK A/C 35400
TO A LTD 35400
31/07/2016
For Creating Tax Liabilities For Advance
TAX ON ADVANCE Dr . 5400
To OUTPUT CGST 9% 2700
To OUTPUT SGST 9% 2700
Go to Accounting Voucher (journal) --->Stat Adjustment--->Nature of Adjustment --->Increase in liabilities --->additional details --->On Account of Advance receipt
19/08/2016
A LTD 118000
TO SERVICES A/C 100000
TO OUTPUT CGST 9% 9000
TO OUTPUT SGST 9% 9000
31/08/2016
Adjustment on tax paid in advance
OUTPUT CGST 9% 2700
OUTPUT SGST 9% 2700
TO TAX ON ADVANCE 5400
Go to Accounting Voucher (journal) --> Stat Adjustment --> Nature of Adjustment --> Decrease in liabilities --> additional details --> On Account of Advance receipt -->Sales Against Advance Receipt
24/10/2016
BANK A/C 82600
TO A LTD 82600
(118000-35400)
CASE 4
Lumpsum Payment Received in Advance
30000 PAYMENT RECD ON 24 JULY
BALANCE ON 24 OCT
PASS ENTRIES
View Answer24/07/2016
BANK A/C Dr. 30000
TO A LTD 30000
31/07/2016
For Creating Tax Liabilities For Advance
TAX ON ADVANCE Dr . 4576
To OUTPUT CGST 9% 2288
To OUTPUT SGST 9% 2288
Go to Accounting Voucher (journal) --->Stat Adjustment--->Nature of Adjustment --->Increase in liabilities --->additional details --->On Account of Advance receipt
19/08/2016
A LTD Dr. 118000
TO SERVICES A/C 100000
TO OUTPUT CGST 9% 9000
TO OUTPUT SGST 9% 9000
31/08/2016
Adjustment on tax paid in advance
OUTPUT CGST 9% Dr 2288
OUTPUT SGST 9% Dr. 2288
TO TAX ON ADVANCE 4576
Go to Accounting Voucher (journal) --> Stat Adjustment --> Nature of Adjustment --> Decrease in liabilities --> additional details --> On Account of Advance receipt -->Sales Against Advance Receipt
24/10/2016
BANK A/C 88000
TO A LTD 88000
(118000-30000)
How to show GST in Returns?
Changes from 15 Nov 2017
No GST on advance received on goods on or after 15 Nov 2017
However, on services, tax on advance is still applicable
Also
Advance Receipt Voucher is still to be given in both cases
