TDS

This query is : Resolved

Gayathri (Querist)
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25 February 2011 Please tell me the journal entry to be made at the time of recognition of income and tds deducted while receiving the income and expenditure and tds deducted at the time of making payment?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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25 February 2011 tds deducted while receiving the income:

Party A/c Dr.
To Income A/c Cr.

Bank A/c Dr.
TDS Recoverable A/c Dr.

To Party A/c Cr.

tds deducted at the time of making payment:

Expenses A/c Dr.
To party A/c Cr
To TDS payable Cr.

Party A/c Dr.
To Bank A/c Cr.

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PINKESH JAIN

PINKESH JAIN (Expert)
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25 February 2011 at the time of booking bill

Party account Dr. 100
To Sales 100

at the time of receiving payaments

Bank account Dr. 90
TDS account Dr. 10
To Party Account 100

if u r closing ur books before receiving payament then

TDS account Dr. 10
To Party Account 10

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PINKESH JAIN

PINKESH JAIN (Expert)
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25 February 2011 for purchases

at the time of booking the bill

Expenses account Dr. 100
To party account 90
To TDS Payable account 10

for payment of TDS

TDS Payable account Dr 10
To Bank 10

For payment to party

Party account Dr. 90
To Bank account 90

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