banner_ad

Accounting method on tds deduction from salaries

This query is : Resolved 
Profile Image

Profile Image

(Querist)
30 December 2015 Dear Sir,
On payment of Salaries I am making the following entry:
Salaries Dr. 10000 (Gross)
To Cash Cr. 10000
and
Cash Dr.1000
To TDS Cr.1000
i.e. I am showing TDS as receipt on making Gross Salaries a/c. Whenever I am paying TDS I am making the Entry as:
TDS Dr. 1000
To Cash Cr. 1000
Someone asked me to make entry as:
Salaries Dr. 9000
to Cash Cr.9000
and on payment
TDS Dr.1000
To Cash 1000

Please suggest me which one is correct. What are accounting methods.
-Mohan
Profile Image

CA PARAS BAFNA

Profile Image

CA PARAS BAFNA (Expert)
30 December 2015 You may follow your accounting method. However you can make the entries by inserting "Salary Payable A/c.
You may do this in the manner - Salary A/c (Dr) 10000 To TDS A/c1000 & To Salary Payable A/c 9000.
At the time of payment Dr Salary payable a/c and TDS A/c by Cr Cash/Bank A/c .
Profile Image

mohan

Profile Image

mohan (Querist)
31 December 2015 Thank you very much for your detailed and quick reply dear Paras sir,
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details