28 September 2016
Hi Experts,
I had classified all our broker's commission a/c under Sundry creditors head in Busy software as guided by our CA.There are around 1500 brokers and there are only two entries in these accounts.I.e one is for commission payment in cash and another for tds deducted on debit side of the a/c.why all these a/c's showing negative balance in balance sheet under sundry creditors list as I have paid the commission in cash so there should not be any liability now.kindly help me where I got wrong.
28 September 2016
because you have not made the entry for commision...pass this entry through Journal voucher) debit commission credit the name of the person to whom commission is paid say XYZ (This entry you have not made) The next is debit XYZ credit cash credit TDS (This entry you have made through payment voucher)
28 September 2016
when the commission falls DUE to be paid to the broker....on that day you pass the entry debit commission credit XYZ when you make the payment debit XYZ credit bank credit TDS....
28 September 2016
In tally, while creating account, you need to be very cautious, meticulous and accurate in giving GROUP to this account. Based on this Group, the software transfers AUTOMATICALLY to balance sheet or Profit & Loss a/c.... you dont have to do anything extra...
28 September 2016
sir look at the following entry I made are these correct?
Dr Commission A/c 10000
Cr. ABC A/c. 10000
now at the time of payment
Dr ABC A/c 10000
Cr Cash/bank. 9500
Cr TDS A/c. 500
kindly look at the amounts too
28 September 2016
mathematically and accountancy wise , it is correct. But please check section 194H.....check if it is applicable to you.... there is one more limit of 15000...for ABC in your above cited example... please consider the same and then proceed to make TDS...ok? http://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx