Borrowed fron ridhi @ 10% interest per annum of Rs 50000...journal entry

CGST and SGST 6% charged intra state sale and purchase...

Dear Student
 
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

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Dr. Cash/ Bank   50000
Cr. Loan - Ridhi             50000
(Being amount borrowed from Ridhi)

Cash/Bank is debited - As cash/cheque is received and it increases bank balance/cash in hand - Debit what comes in 
Loan- Ridhi  -  Loan from Ridhi is a liability -  Credit the Giver. 

 Cash Purchase - 10,000 ; CGST - 6% , SGST - 6%

Dr Local Purchase - 12%           10,000
Dr Input CGST - 6%                       600
Dr Input SGST - 6%                        600
Cr Cash ​​​​​​​                                                    11,200

We are paying 11.200 in total, out of which 10,000 towards the purchase of goods and 600 each towards CGST and SGST. 

Cash Sales - 15000 : CGST - 6%, SGST - 6%

Dr Cash               16800
Cr Local Sale - 12%              15000
Cr Output CGST - 6%               900
Cr Output SGST - 6%               900

We are receiving Rs. 16,800 in total, out of which 15,000 towards sale of goods and 900 each towards CGST and SGST.

In case, the purchase and sale transactions are on credit, then Cash A/c will not be used. The names of respective parties i.e. Creditor and Debtor will be used.    
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