DK Goel Solutions Chapter 10 Accounting for Goods and Service Tax (GST)
Read below DK Goel Solutions Class 11 Chapter 10 Accounting for Goods and Service Tax (GST). These problem solutions have been prepared based on the latest Class 11 DK Goel Accountancy book issued for current academic year and the questions given in each chapter.
In this chapter of DK Goel Accounting Solutions Class 11, explaining about Concepts of GST, Theories of SGST and Numericals on GST and SGST.
The chapter also includes lot of good quality problems or questions which can be very helpful to understand the concepts for Class 11 students of Accountancy and will also help build a strong foundation.
DK Goel Solutions Class 11 Chapter 10 solutions are free and will help you to prepare for Class 11 Accountancy
Accounting for Goods and Service Tax (GST) DK Goel Class 11 Accountancy Solutions
Students can refer below for solutions for all questions given in your DK Goel Accountancy Textbook for Class 11 in Chapter 10
Short Answer Question
Question 1: What is GST?
Solution 1: GST stands for Goods and Services tax. It is tax levied indirectly on the supply of goods and services.
Question 2: Name the two central taxes that have merged into GST.
Solution 2: Below are the two central taxes that have merged into GST:-
(i) Custom duty
(ii) Excise duty
Question 3: Name the two-state taxes that have merged into GST.
Solution 3: Below are the two central taxes that have merged into GST:-
(ii) Purchase Tax
Question 4: Give two advantages of GST.
Below are the two advantages of GST:-
(i) GST reduce the sales without receipts and corruption.
(ii) GST reduce multiple tax evasion.
Question 5: What is the full form of CGST?
Solution 5: Central Goods and Services Tax is the full form of CGST.
Question 6: What is the full form of SGST?
Solution 6: State Goods and Services Tax is the full form of CGST.
Question 7: What is the full form of IGST?
Solution 7: Integrated Goods and Services Tax is the full form of IGST.
Question 8: What is CGST?
Solution 8: Integrated Goods and Service Tax applies to CGST. On intra-state or inside state transactions, it is charged. The central government oversees the CGST which is administered by the CGST Act.
For Example: A dealer of Delhi sells goods to a dealer of Delhi worth Rs. 1,50,000. Suppose the CGST and SGST rate is 12%. In the case the seller will charge 6% of CGST and 6% of SGST Rs. 9,000 as CGST and Rs. 9,000 as SGST.
Question 9: What is IGST?
Solution 9: Integrated Goods and Service Tax applies to IGST. It is imposed on purchases from inter-state outlets. The IGST is monitored by the IGST Act.
For Example: A dealer of Mumbai sells goods to a dealer in Uttar Pradesh worth Rs. 1,25,000. Suppose the IGST rate is 12%. In the case the seller will charge Rs. 15,000 as IGST.
Practical Question for DK Goel Solutions Class 11 Chapter 10
Question 1: Pass entries in the books of Mukerjee & Sons. assuming all transactions have taken place within the state of Uttar Pradesh. Assume CGST @9% and SGST @ 9%.
|March 01||Bought goods for Rs. 5,00,000 from Mehta Bros|
|March 04||Goods sold for Rs. 8,00,000 to Munjal & Co.|
|March 15||Paid for advertisement Rs. 40,000 by cheque.|
|March 18||Bought furniture for office use Rs. 50,000 and payment made by cheque|
|March 25||Paid for printing and stationery Rs. 8,000.|
|March 31||Payment of the balance amount of GST.|
Point in mind:-
GST Rate Structure:- Goods and Service are divided into five slabs for collection of GST:
Essential items including food 0%
Common Use Items 5%
Standard Rate 12%
Maximum Goods and all services Standard Rate 18%
Luxury items and tobacoo 28%
Question 2: Pass entries in the books of Devdhar & Bros. Odisha, assuming all transactions have been entered within the state, charging CGST and SGST @ 9% each.
|Mar-04||Purchased goods for Rs. 5,00,000 from Sunil Bros.|
|Mar-07||Goods returned to Sunil Bros. for Rs. 20,000.|
|Mar-10||Sold goods to Mehta & Co. for Rs. 8,00,000.|
|Mar-12||Goods returned by Mehta & Co. for Rs. 30,000.|
|Mar-20||Goods withdrawn by Proprietor for personal use Rs. 10,000.|
|Mar-25||Goods distributed as free samples Rs. 5,000.|
|Mar-26||Paid advertisement expenses by cheque Rs.20,000.|
|Mar-31||Payment made of balance amount.|
Question 3: Record the following transactions in the books of Sahdev & Sons assuming all transactions have been entered within the state of Bihar, Charging CGST and SGST @ 9% each.
|1. Bought goods from Nanak Bros. for Rs. 4,00,000 at 10% trade discount and 3% cash discount on the purchase price. 25% of the amount paid at the time of purchase.|
|2. Sold goods to Kumar & Sons. for Rs. 2,00,000 at 20% trade discount and 5% cash discount on sale price. 60% of the amount received by Cheque.|
|3. Received from Gopi Chand Rs. 38,000 by Cheque after deducting 5% cash discount.|
|4. Paid Rs. 20,000 for rent by Cheque.|
|5. Paid Rs. 50,000 for salaries by Cheque.|
|6. Goods worth Rs. 10,000 distributed as free samples.|
|7. Rs. 5,000 due from Chanderkant are bad-debts.|
|8. Sold household furniture for Rs. 15,000 and the proceeds were invested into business.|
Question 4: Pass entries in the books of Mr. Roopani of Gujarat assuming CGST @ 9% and SGST@ 9%.
|1. Purchased goods for Rs. 2,00,000 from Suryakant of Jaipur (Rajasthan) on Credit.|
|2. Sold goods for Rs. 1,50,000 to Mr. Pawar of Mumbai (Maharashtra) and the cheque received was sent to bank.|
|3. Sold goods for Rs. 2,50,000 within the state on credit.|
|4. Paid insurance premium of 20,000 by cheque.|
|5. Purchased furniture for office for Rs. 60,000 by cheque.|
|6. Payment made of balance amount of GST.|
Calculation of GST
Outstanding IGST = Output IGST – Input IGST
Outstanding IGST = Rs. 27,000 – Rs. 36,000
Outstanding IGST = (Rs. 9,000)
Set off of GST:-
Output CGST can set-off by both Input CGST and Input IGST
CGST outstanding = Output CGST – Input IGST – Input CGST
CGST outstanding = Rs. 22,500 – Rs. 9,000 – Rs. 7,200
CGST outstanding = Rs. 6,300
Outstanding SGST = Output SGST – Input SGST
Outstanding SGST = Rs. 22,500 – Rs. 7,200
Outstanding SGST = Rs. 15,300
Question 5: Pass entries in the books of Sh. Jagdish Mishra of Lucknow (U.P.) assuming CGST @ 6% and SGST @ 6%.
|5||Purchased goods for Rs. 2,50,000 from Virender Yadav of Patna (Bihar).|
|12||Sold goods costing Rs. 60,000 at 50% profit to Partap Sinha of Ranchi.|
|14||Purchased goods for Rs. 70,000 from Ram Nath of Kanpur against cheque.|
|18||Sold goods at Varanasi (U.P.) Costing Rs. 2,25,000 at 33½% profit less trade discount 10% against cheque which was deposited into the bank.|
|20||Paid rent Rs. 25,000 by cheque.|
|31||Payment made of balance amount of GST.|
Solution 5 :
Question 6: Pass entries in the books of all parties in the following cases assuming CGST @ 6% and SGST @ 6%.
|1||Mahesh Chandra of Bihar purchased goods for Rs. 1,00,000 from Sunil Soren of Jharkhand and sold the same to Deepak Patnaik of Odisha for Rs. 1,50,000.|
|5||Deepak Patnaik sold goods to Suresh Yadav of Odisha for Rs. 1,80,000.|
|10||Suresh Yadav sold goods to Ravi Chakravarti of West Bengal for Rs. 2,50,000.|
|14||Ravi Chakravarti sold goods costing Rs. 2,50,000 to Sanjay Diwedi of West Bengal at a profit of 40% on cost.|
Question 7: Pass entries in the books of Krishnan of Bengaluru (Karnataka) in the following cases:
|1. Purchased goods from Karunakaran of Chennai for Rs. 1,00,000. (IGST @18%)|
|2. Sold goods to Ganeshan of Bengaluru for Rs. 1,50,000. (CGST @ 6% and SGST @ 6%)|
|3. Sold goods to S. Nair of Kerala for Rs. 2,60,000. (IGST @18%)|
|4. Purchased a Machinery for Rs. 80,000 from Surya Ltd. against cheque. (CGST @ 9% and SGST @ 9%)|
|5. Paid rent Rs. 30,000 by cheque. (CGST @ 6% and SGST @ 6%)|
|6. Purchased goods from Ram Mohan Rai of Bengaluru for Rs. 2,00,000. (CGST @ 6% and SGST @ 6%)|
|7. Paid insurance premium Rs. 10,000 by cheque. (CGST @ 9% and SGST @ 9%)|
|8. Received commission Rs. 20,000 by cheque which is deposited into bank. (CGST @ 9% and SGST @ 9%)|
|9. Payment made of balance amount of GST|
Question 8: Prepare a book for all the parties mentioned below assuming CGST and SGST 9% each.
|Apr-05||Goods sold by manufacturer Anu of Delhi to a dealer Biraj of Delhi for Rs.50,000|
|Apr-07||Sold goods by Biraj to Chandan of Punjab for Rs.1,20,000|
|Apr-15||Sold goods by Chandan to Deepa of Punjab for Rs.1,50,000|
|Apr-20||Sold goods by Deepa to Eila of Maharashtra for Rs.1,50,000 at a profit of 33 ½% on cost.|
Question 9: Pass entries in the books of Ashok Bros. assuming that all transactions have been entered within Delhi and assuming CGST @6% and SGST @ 6%.
|Jan-02||Purchased goods for Rs.2,00,000|
|Jan-05||Sold goods for Rs.3,00,000 on credit|
|Jan-10||Purchased computer printer for office for Rs.50,000 and payment made by cheque|
|Jan-20||Paid legal consultation fee Rs.10,000|
|Jan-22||Paid rent Rs.20,000 by cheque|
|Jan-31||Payment made of the balance amount of GST|
Calculation of GST Outstanding:-
Output CGST can set-off by both Input CGST and Input IGST
Outstanding CGST = Output CGST – Input CGST
Outstanding CGST = Rs. 18,000 – Rs. 12,000 – Rs. 3,000 – Rs. 600 – Rs. 1,200
Outstanding CGST = Rs. 18,000 – Rs. 16,800
Outstanding CGST = Rs. 1,200
Output SGST can set-off by both Input SGST and Input IGST
CGST outstanding = Output SGST – Input SGST
CGST outstanding = Rs. 18,000 – Rs. 12,000 – Rs. 3,000 – Rs. 600 – Rs. 1,200
CGST outstanding = Rs. 18,000 – Rs. 16,800
CGST outstanding = Rs. 1,200
Total Amount paid by bank for GST = Rs. 1,200 + Rs. 1,200 = Rs. 2,400
MCQs for Accountancy Class 11 with Answers Chapter 10 Accounting for Goods and Service Tax (GST)
Question On intra-state purchase of goods, which of the following accounts are debited:
(a) Input IGST Account.
(b) Input CGST Account and Input SGST Account.
(c) Input IGST Account and Input CGST Account.
(d) Input IGST Account and Input SGST Account.
Question On inter-state (i.e., outside the state) purchase of goods, which of the following GST is levied:
(b) IGST and CGST.
Question On inter-state sale of goods, which of the following account is credited:
(a) Output CGST A/c.
(b) Output IGST A/c.
(c) Input IGST A/c.
(d) Output SGST A/c.
Question On intra-state (Le., within the state) purchase of goods, which of the following GST is levied:
(c) CGST and SGST.
(d) SGST and IGST.
As explained in DK Goel Solutions class 11 Chapter 10 Goods and Services Tax is abbreviated as GST. It is a type of tax that is indirectly proportional to the supply of goods and services.
Here are the main advantages of GST –
● GST eliminates the cascading tax effects by bringing indirect tax regimes together.
● GST drives out multiple tax evasions to promote a corruption-free tax administration.
● GST presents a bunch of transparent and clear rules.
● GST helps in the control and regulation of the price of goods.
CGST depicts the tax charged by the Central Government for the supply of goods and services around a state. Let’s take an example to clarify the concept – Suppose a seller in Chennai sells a product with a cost price of Rs. 500 in Chennai, and the CGST is 5%. The seller will charge Rs. 525 for the product.
The Goods and Services Tax comprises two central taxes, namely, the Central Customs Duty and the Excise Duty taxes. While at the state level, GST includes VAT and purchase taxes.
Integrated Goods and Services Tax is abbreviated as IGST. IGST is basically the tax charged by the State Government on the exchange of goods and services between states. For instance, if a seller from West Bengal sells the goods in Delhi with the cost price of the goods is Rs.1000, and the IGST is 10%. Then the seller will charge Rs.1100 for the goods.
State Goods and Service Tax is abbreviated as SGST.
GST is one of the most crucial topics in class 11, Accountancy. It is the most scoring topic, in which most students can secure full marks. With proper guidance, you can easily grab good marks in this chapter. Make sure you refer to the DK Goel Solutions Accountancy to get a handful of questions coupled with their solutions, and don’t miss the most important ones. Practice the previous year’s questions popping out from the topic.