Accounting Under Inventory Lead Model

Trader Company
Example:

Entries 20th of Every Month

nventory Lead Model

E-Commerce Company Located in Chennai Sells PC within Tamil Nadu by Purchasing it within State
Retail Purchase Value Rs. 1,00,000/- and Sale Value Rs. 1,20,000/-. Pass GST Accounting Entries

Purchase TV From Karnatka and sell in states other than Tamilnadu. Purchase Price Rs.1,50,000/-
and Part goods are sold and sale value is Rs. 1,00,000/-

GST-18%
Particulars Debit
INTRA STATE PURCHASE
a) Entry for Purchase
Purchase A/c Dr 100,000.00
CGST Receivable A/c ( Input Services) 9,000.00
SGST Receivable A/c ( Input Services) 9,000.00
To Vendor A/c

b) Entry for Sale

Debtors A/c Dr 141,600.00
To Sales A/c
To CGST Payable A/c ( For Output Services)
To SGST Payable A/c ( For Output Services)

Particulars Debit
INTER STATE
a) Inter state Purchase
Purchases A/c Dr 150,000.00
IGST Receivable A/c Dr 27,000.00
To Vendor A/c

b) For Inter State Sale

Debtors A/c Dr 118,000.00
To Sales A/c
To IGST Payable A/c ( For Output Services)

C) Entry for Deposting Cash in Cash GST Ledgers

Cash CGST Ledger A/c Dr 1,800.00
Cash SGST Ledger A/c Dr 1,800.00
To Bank A/c

D) Entry for Setoff

CGST Payable A/c Dr 10,800.00
To Cash CGST Ledger A/c
To CGST Receivable A/c

SGST Payable A/c Dr 10,800.00

To Cash SGST Ledger A/c
To SGST Receivable A/c

IGST Payable A/c Dr 18,000.00

To IGST Receivable A/c
Credit

118,000.00

120,000.00
10,800.00
10,800.00

Credit

177,000.00

100,000.00
18,000.00

10800-9000
10800-9000
3,600.00

9,000.00
1,800.00

9,000.00
1,800.00

18,000.00
Accounting Under Open Market Place Model
Example E-Commerce Company Located in Chennai Sells PC within Tamil Nadu by Purchasing it within State
Retail Purchase Value Rs. 1,00,000/- and Sale Value Rs. 1,20,000/-. Pass GST Accounting Entries
Commision of 2% Paid to E- Commerce Operator
All Goods Purchased from Maharstra Rs.1,00,000/- and sold in Gujarat Rs.2,00,000/-
Pass GST Accounting Entries

Entries in the Books of Vendor

Particulars
a) Entry for Purchase
Purchase A/c Dr
CGST Receivable A/c ( Input Services)
SGST Receivable A/c ( Input Services)
To Vendor A/c

b) Entry for Sale

Debtors A/c Dr
To Sales A/c
To CGST Payable A/c ( For Output Services)
To SGST Payable A/c ( For Output Services)

C) Commission to E-Commerce Operator

Commission A/c Dr
CGST Receivable A/c Dr
SGST Receivable A/c Dr
To E- Commerce Operator A/c

D) For Inter State Purchase

Purchase A/c Dr
IGST Receivable A/c
To Vendor A/c

E) For Intra State Sale

Debtors A/c Dr
To Sale A/c
To IGST Payable A/c

F) Commission to E-Commerce Operator

Commission A/c Dr
IGST Receivable A/c Dr
To E- Commerce Operator A/c

G) Entry for Deposting Cash in Cash GST Ledgers

Cash CGST Ledgers A/c Dr
Cash SGST Ledgers A/c Dr
Cash IGST Ledgers A/c Dr
To Bank A/c

H) Payment Received from E- Commerce Operator

Bank A/c Dr
E- Commerce Opertor A/c Dr
To Debtors A/c

I) Entry for Setoff

CGST Payable A/c Dr
To Cash CGST Ledger A/c
To CGST Receivable A/c

SGST Payable A/c Dr

To Cash SGST Ledger A/c
To SGST Receivable A/c

IGST Payable A/c Dr

To IGST Receivable A/c
To Cash IGST Ledger A/c
Nadu by Purchasing it within State
-. Pass GST Accounting Entries

arat Rs.2,00,000/-

Debit Credit

100,000.00
9,000.00
9,000.00
118,000.00

141,600.00 ****Here the Debtor is the final Consumer

120,000.00
10,800.00
10,800.00

2,400.00 1,200,000*2%
216.00
216.00
2,832.00

100,000.00
18,000.00
118,000.00

236,000.00
200,000.00
36,000.00

4,000.00 200000*2%
720.00
4,720.00

1,584.00 10800-9000-216
1,584.00 10800-9000-216
17,280.00 36000-18000-720
20,448.00

370,048.00 Balance Amount

7,552.00 Commission
377,600.00 Total Debtors

10,800.00
1,584.00
9,216.00

10,800.00
1,584.00
9,216.00

36,000.00
18,720.00
17,820.00
Accounting Under Open Market Place Model
Example E-Commerce Company Located in Chennai Sells PC within Tamil Nadu by Purchasing it within State
Retail Purchase Value Rs. 1,00,000/- and Sale Value Rs. 1,20,000/-. Pass GST Accounting Entries
Commision of 2% Paid to E- Commerce Operator
All Goods Purchased from Maharstra Rs.1,00,000/- and sold in Gujarat Rs.2,00,000/-

Entries in the E-Commerce Operator

Particulars Debit

Receovering the amount from the debtors and passing to the Vendor
A) For Amount Due
Customer A/c Dr 376600
To Vendor A/c
( Due from Customer and same liable to Vendor)

B) For Intra State Sale

Vendor A/c Dr 2832
To Commission A/c
To CGST Payable A/c
To SGST Payable A/c
( Commission Due from Vendor)

C) For Inter State Sale

Vendor A/c Dr 4720
To Commission A/c
To IGST Payable A/c
( Commission Due from Vendor)

D)Payment Received from the Debtor( Customer)

Bank A/c Dr 377600
To Customer A/c Dr

E) For Payment to Vendor

Vendor A/c Dr 370048
To Bank A/c

F) Cash Payment to Govt

Cash IGST Ledger A/c Dr 720
Cash CGST Ledger A/c Dr 216
Cash SGST Ledger A/c Dr 216
To Bank A/c

G) For Setoff
CGST Payable A/c Dr 216
To Cash CGST Ledger A/c

SGST Payable A/c Dr 216

To Cash SGST Ledger A/c

IGST Payable A/c Dr 720

To Cash IGST Ledger A/c
Nadu by Purchasing it within State
-. Pass GST Accounting Entries

arat Rs.2,00,000/-

Credit

141600+23600
377600

2400
216
216

4000
720

377600

370048 Due 377600

Less: Commission 2832
Less: Commission 4720
370048

1152
216

216

720
Example

Mr.S
( Supplier to Mr. V)

Kolkata

Scenarios
1 Interstate Purachse from S and V IGST Receivable
2 InterState Sale from V and C IGST Payable
3 E-Commerce Commission 2%- Inter State IGST Receivable

Entries in the Books of Vendor ( Mr. V)

Particulars Debit Credit

A) Interstate Purchase
Purchase A/c Dr 100,000.00
IGST Receivable A/c Dr 18,000.00
To Mr. S A/c 118,000.00

B) Interstate Sale
Mr. C A/c Dr 177,000.00
To Sale A/c 150,000.00
To IGST Payable A/c 27,000.00

C) Commission to the E-Commerce Operator

Commission A/c Dr 3,000.00
IGST Receivable A/c Dr 540.00
To E- Commerce Operator 3,540.00

D) Amount Received from the E& Co

Bank A/c Dr 173,460.00
E- Commerce Operator A/ c Dr 3,540.00
To Mr. C A/c 177,000.00

E) Cash Deposit in the Govt A/c

Cash IGST Ledger A/c 8,460.00
To Bank 8,460.00

F) Setoff
IGST Payable A/c Dr 27,000.00
To IGST Receivable A/c 18,540.00
To Cash IGST Ledger A/c 8,460.00
Acting as a Agent
Mr. V E.Commerce Operator
( Vendor)

Delhi Mumbai

100000 2% Commission
Purchase

Receivable

Receivable

Entries in the Books of E- Commerce Operator

Particulars Debit

Receovering the amount from the debtors and passing to the Vendor
A) For Amount Due
Mr. C A/c Dr 177000
Mr. V A/c

B) For Commission
Mr. V A/c Dr 3540
To Commission A/c
To IGST Payable A/c

C) Amount received from Mr. C

Bank A/c Dr 177000
To Mr. C A/c

D) Payment Made to Mr.V

Mr. V A/c Dr 173460
To Bank A/c

E) Cash Payment to Govt

IGST Payable A/c Dr 540
To Bank A/c
27000-18000-540
F) Setoff
IGST Payable A/c Dr 540
To Cash IGST A/c
Mr. C
(Customer)

Gujarat

150000
Sale

Credit

g to the Vendor

177000

3000
540

177000

173460

540
540
Accounting for Aggregator

Case Study: Ola Provides service to a customer within a state and charges Rs.3186.00
It Constitutes Rs.2400+ Taxes for the services by Driver
Rs. 300+ Taxes as commission Income
Particulars Debit

A) Bank A/c Dr 3186

To Driver A/c
To CGST payable A/c (RC)
To SGST payable A/c (RC)
To Commission A/c Dr
To CGST payable A/c (FC)
To SGST payable A/c (FC)

B) Payment to Driver
Driver A/c Dr 2400
To Bank A/c

C) Cash Deposit in Govt A/c

Cash CGST ledger A/c Dr 243
Cash SGST ledger A/c Dr 243
To Bank A/c

D) Setoff A/c
CGST Payable A/c Dr (RC) 216
SGST Payable A/c Dr (RC) 216
CGST Payable A/c Dr (FC) 27
SGST Payable A/c Dr (FC) 27
To Cash CGST Ledger A/c
To Cash SGST Ledger A/c
Break up of Rs. 3186/-

A) Payment to Driver( Driver is URG) 2400

B) Add: CGST on RCM@9% 216
Credit C) Add: SGST on RCM@9% 216
2832

2400 d) Commission Income 300

216 e) Add: CGST on FC@9% 27
216 f) Add: SGST on FC@9% 27
300 354
27
27 3186

2400

486

243
243
If Driver is Registered. He
Charges 2400+216+216
OLA BOOKING
Case Study URL https://www.caclubindia.com/ar
Advance Received from Customer on April 1st: Rs.100/-
Commision Rs.25/- , GST Rate @18%, GST on Commission =4.5
Booking Confirmed for April 20th

Entries in the Books of E- Commerce Operator

Particulars Debit Credit

April 10th A) Advance Received

Bank A/c Dr 100
To Advance Received from Guest 100

April 20th Advance from Guest A/c Dr 100

To Hotel A/c- Fortune Trinity 100
( Checkin Date- Transferring to the Vendor A/c)

April 20th Hotel Fortune Trinity- A/c Dr 29.5

To Commission A/c 25
To IGST Payable A/c 4.5
( Commission Accrued once Checkin is Done)

30th April Hotel A/c- Fortune Trinity 75

To Bank A/c 74
To TCS Payable A/c 1

20th May Cash Deposit to Govt A/c

IGST Cash Ledger A/c Dr 4.5
To Bank A/c 4.5

Setoff
IGST Payable A/c Dr 4.5
To IGST Cash Ledger A/c 4.5
://www.caclubindia.com/articles/accounting-entries-for-homestay-e-commerce-and-tcs-provision-under-gst-33361.asp

4.5

Here Rs. 100 is inclusive of GST