Kalp Accounting Learning Articles

Journal Entry on Cash Purchase of Trading Goods when Indirect Tax like GST,VAT etc. is charged and you are eligible to claim ITC(Input Tax Credit) Meaning of Cash Purchase:   Cash Purchase means goods purchased/received from the supplier or vendor with immediate payment against that goods by Cash/Bank. Detail Explanation with Example. Let's take an example for better understanding. In the Books of Mr.Sanjay Gupta,find out the Debit and Credit Ledgers involved of the following transa ction . Goods purchased from M/s.Parbati Enterprises, Bhubaneswar as per Cash Memo No-489 for ₹30,499/- including GST 12% on dated 05/04/2020 Steps and Procedures for Decision making for Debiting and Crediting of Ledger Accounts of the above transaction. Step - 1 In first step,we have to identify the Ledger Accounts involved in the above transaction. As a result,we found three Ledger Accounts. 1) Purchase A/c 2) GST A/c(IGST/CGST and SGST are used as per applicability of GST Act.) 3) Cash A/c Step - 2 I

An Explanation on meaning of Accounting It is very common in human society that when any person starts a business, he/she wants to record all the financial data in written formats either using pen and paper or digital/electronic mode for proper future planning of his/her business. When the record keeping procedure follows a systematic and chronological order which can be easily used by the business owners/users,that systematic procedure is termed as  'Accounting' . The American Institute of Certified Public Accountants( AICPA) states/explains/defines that "Accounting is an art of recording,classifying and summarizing in a significant manner and in terms of money,transactions and events which are,in part at least,of a financial character,and interpreting the results thereof'". The term " Accounting " can be explained by the following way for an easy understanding. In the field of Accounting,mainly three sub-fields/branches are taken into consideration. Fi

Calculate Taxable Value and GST, if Value including GST is known. Formula for calculating Taxable Value is Value including GST * 100   (100+Rate of GST)   Formula for calculating GST Value is Taxable Value * Rate of GST        100   For an Example   If Value including GST is  ₹9000/- and Rate of GST is 18%, Calculate Taxable Amount and GST Amount   Solution              Related Articles : Types of Account Debit and Credit Rule Double Entry System of Book Keeping Journal   Ledger   Trial Balance Trading and Profit & Loss Account Balance Sheet Bank Reconciliation Statement