Borrowed fron ridhi @ 10% interest per annum of Rs 50000...journal entry
CGST and SGST 6% charged intra state sale and purchase...
Dear Student
Please note that as per relevant provisions GST is not applicable on Loan and Interest on loan. Therefore in the above entry no GST is taken.
Regards
Journal | ||||
Date | Particulars | Debit | Credit | |
Cash A/c | Dr. | 50,000 | ||
To Loan from Ridhi A/c | 50,000 | |||
(Being loan @ 10% interest taken) |
Please note that as per relevant provisions GST is not applicable on Loan and Interest on loan. Therefore in the above entry no GST is taken.
Regards