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Title : Journal Entries of Debit Note if GST Applies
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Journal Entries of Debit Note if GST Applies
Journal Entries of Debit Note if GST AppliesJournal Entries of Debit Note if GST Applies - Hello Friend Accounting Methods, In the article you read this time with the title Journal Entries of Debit Note if GST Applies , We have prepared this article for you to read and retrieve information therein. Hopefully the contents of postings Article GST, Article journal entries, We write this you can understand. Alright, good read.
Title : Journal Entries of Debit Note if GST Applies
link : Journal Entries of Debit Note if GST Applies
Journal Entries of Debit Note if GST Applies
Hope, you will already read the journal entries of Debit Note before applying of GST. Now GST has applied in India. Now, every accounting record will be fully adopt GST. Now, we again define the Debit Note and also pass the journal entries in which we will also adjust GST.
Debit Note
Debit Note is the Document which is prepared by us.
1. Which is given to Supplier for the Proof That we returned his bought goods. We have debited his account. This enote will help to pass the journal entry of purchase return. It is given by customer to his creditor. He inform that he will now pay less amount to his supplier.
Apply of GST
GST will also adjust against original invoice. GST liability will less due to purchase return.
In the Books of Debtor
Creditor / Supplier Account Debit
Purchase Return Account Credit
CGST Account Credit
SGST Account Credit
For example
Our supplier has sent dead product to us of Rs. 10,000. Applicable GST is 18%
We have issued Debit note and we have pass following purchase return entry and also adjust same GST from already paid GST.
Creditor Account / Supplier Account Debit 11800
Purchase Return Account Credit 10,000
CGST Account Credit 900
SGST Account Credit 900
2. If our customer will not pay on the time. At that time as supplier, we can also take the penalty. At that time, we will issue debit note to customer and inform him that we are debiting his account. It means, you did not pay on the time.. Now, you have to pay both sale amount and penalty.
Apply of GST
If we charge the penalty on our customer for not paying us on the time. Our customer's GST liability will also increase and our liability will also increase. Means GST on penalty which we have to deposit in Govt. account. Both penalty and GST liability will mention in Debit Note
In the Books of Supplier
Our Customer / Debtor Account Debit
Penalty on Not Paid of Sales Value Credit
CGST Account Credit
SGST Account Credit
For example
Mr. A is our customer, who did not pay our Rs. 1,00,000 on the time. So, we have charged penalty. So, we have to record receivable penalty plus GST of 18%
Mr. A Account Debit 11800
Receivable Penalty or Penalty Account Credit 10000
CGST Account Credit 900
SGST Account Credit 900
3. If we received Discount from Our Supplier for Fast Payment. We can Issue Debit Note or Accept Credit Note for debit his account and Rest amount we have to Pay.
Apply of GST
At that time, our GST Tax liability will also decrease upto the level discount on fast payment.
In the Books of Customer/ Debtor
Creditor Account / Supplier Account Debit
Discount on Fast Payment Account Credit
CGST Account Credit
SGST Account Credit
For Example
Mr. B is our supplier. He has offered us to pay before 30th Aug. 2017 and he will give Discount of Rs. 10,000. We are ready to pay one month before. So, we have to debit our Creditor in our book plus decrease our GST liability through Debit Note. GST is 18%
Mr. B account Debit 11800
Receivable Discount on Fast Payment Account Credit 10000
CGST Account Credit 900
SGST Account Credit 900
Further Reading
Thus Article Journal Entries of Debit Note if GST Applies
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