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Brokers commission a/c showing negative balance

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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 ok and do I need to pass another entry I.e dr p& l and credit commission. or it will automatically go into p&l a/c




28 September 2016 and one more thing on what date I will pass first entry of commission

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 ok I understand. thankew sir

28 September 2016 I get all my queries solved here and that too quickly. thanks




28 September 2016 you are most welcome.

28 September 2016 sir above entry would be Dr commission a/c cr A's commission a/c Right?

28 September 2016 debit commision
credit A.....(No need to call it A's commission...you can simply call it A's account)

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



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