[aaykarbhavan] Journal Entries

On 26-4-2011, M/s National Traders received a sales order from Excel Traders, Mumbai for 4 photo copying machines priced at Rs. 43,000 each. M/s National Traders raised a sales invoice for the said item vide invoice number 012, despatched 2 nos and requested the branch office – National Enterprises to despatch remaining quantity. CST @ 2% was charged while invoicing against C Form. The sale value and CST amount of goods despatched by branch office was reversed on 27-4-2011. Entries in Books of National Traders 26-4-2011    Excel Traders     Debit        175440                                     To Interstate Sales 2%        172000                                     To CST Payable 2%            3440   27-4-2011    Interstate Sales 2%        86000                                     To Interstate Sales - Tax Free        86000                                         CST Payable 2%            1720                                     To National Enterprises         1720   These are the entries that the book says. My questions are 1. Why this entry on 27-4-2011 passed to reverse inter-state sale and cst? 2. What will be the entries in the books of National Enterprises?   Thanks Shivani            Get Jokes, Facts, Vocabulary, Pictures, Songs in your Email   Join Wisdom Garden with your Yahoo Mail ID   Link: http://in.groups.yahoo.com/group/wisdomgarden/   After Joining, Check your Spam Folder and mark mails sent by Wisdom Garden as NOT SPAM to get mails in your Inbox.

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