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Entry for Machine Purchase

Accounting Entries 3681 views 2 replies

salman`

branch head

22 Points Posted on 23 November 2019

HI ,

We have started a new Firm and have purchased a machine of 10 Lakh , please suggest how to do the entry in the software , i am using Marg Software for accounting , you can correlate with Tally for my Understanding. Also pls suggest the group under which machine will fall ( Fixed Asset etc )

Also the entry for furniture which we have purchased locally ( without GST )

Thanks

Replies (2)

prasad Nilugal

GST Practitioner & Accounts

15093 Points Posted on 25 November 2019

If you are not doing business of purchase & Sale of machine & furniture then following entries in the books of accounts

J.E for purchase of machinery

1) Machinery A/c Dr 100000

CGST A/c Dr 9000

SGST A/c Dr 9000

To Sundry Creditors A/c Cr 118000

(Being Purchase of machine vide Invoice no --- Dated --- )

Note - Machine is under Fixed Asset in Balance Sheet also I have consider GST rate @ 18% , and Local purchase ( you may apply as per Invoice ) , If it is Inter-sate then IGST will applicable . Sundry Creditors will be under Creditors . Taxes will be under Duties & Taxes

Purchase of Furniture without GST

2) Furniture A/c Dr

To Sundry Creditors A/c Cr

( being purchase furniture Invoice No --- Date --)

Note - Furniture under Fixed Asset and Sundry Creditors will be under Creditors .