Sales of Goods with charging indirect tax like GST/VAT(Books of Account with Journal Entry)
Let's come to discuss about the Accounting treatment for Sale of Goods with Journal Entry charging Indirect taxes like GST/VAT etc. When Sale of Goods with charging Indirect Taxes like GST/VAT are made, one have to record/maintain the below mentioned Accounting Records. Preparation of Sales Invoice/Bill/Cash Memo Recording of Journal Entry into the Journal Register. Posting of Corresponding Ledger Account from the Recorded Journal Entry. Recording in Sales Register etc. When Goods are sold with charging Indirect tax like GST/VAT on immediate Cash Receipt i.e Cash Sale of Goods. Debit Account : Cash Account Credit Account : Sales Account GST Account Journal Entry : Ledger Posting : In Cash Ledger/Cash Book. In Sales Ledger/Sales Account. In GST Ledger Account. Recording in Sales Register. Example : In the Books of M/s.Triveni Medicare, Bhubaneswar, Odisha(GSTIN-21ACHPD1234Q1Z9) Goods sold for Cash to M/s.Durga Medicine, Raygada, Odisha,GSTIN - 21AAHFD0909P1ZQ for ₹1,23,000/-(Taxabl