Provision / Due Entry:
---------------------
Dr. TDS Receivable A/c (Personal A/c - Dr.the Receiver)
Dr. Interest Receivable A/c (Personal A/c - Dr. the Receiver)
Cr. TDS Refund / IT Refund A/c (Nominal A/c - Cr, Incomes & Gains)
Cr. Int. on TDS Refund A/c (Nominal A/c - Cr, Incomes & Gains)
Receipt Entry
------------------
Dr. Bank A/c (Real A/c - Dr, What comes in)
Cr. Interest Receivable (Personal A/c - Cr the Giver)
Cr. TDS Receivable (Personal A/c - Cr the Giver)
Closing Entry:
------------------
Dr. TDS Refund / IT Refund A/c
Dr. Interest on TDS Refund A/c
Cr. Profit & Loss A/c
Note:
As per AS9 - Revenue Reconition, Revenue should be recognised when there no significant uncertainty exist at the time of Ultimate Collection.
Hence, Irrespective of the Receipt, due entry or provision entry should be passed for the compliance of AS9