Journal entry

This query is : Resolved

Kundan (Querist)
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09 July 2015 I have to pass a journal entry where rent has to be adjusted from security money and tds also has to be deducted.

Rent is 51750/- and tds is 5175

Ankur Singhal

Ankur Singhal (Expert)
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10 July 2015 Rent A/c DR. 51750/-
To TDS 5175/-
To Advance Security (Amt Adjusted)
To Bank (If any)

Kundan

Kundan (Querist)
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10 July 2015 but we have to deduct tds portion also from security amount

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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02 August 2024 To pass the journal entry where rent is adjusted from the security deposit and TDS is deducted, you need to ensure that both the rent and TDS are properly accounted for, and the adjustment of security deposit is accurately reflected. Here’s how you can handle this:

### **Details:**
- **Rent Amount**: ₹51,750
- **TDS (10%)**: ₹5,175
- **Security Deposit**: Adjusted against the rent, including the TDS portion

### **Journal Entries:**

1. **Adjust Rent and TDS against Security Deposit:**

**Journal Entry:**

```
Date Account Debit Credit
-------------------------------------------------------------
[Date] Rent Expense 51,750
TDS Payable (Rent) 5,175
To Security Deposit 56,925
```

**Explanation:**
- **Rent Expense** (Debit): Record the total rent expense.
- **TDS Payable (Rent)** (Debit): Record the TDS amount to be deducted and paid to the government.
- **Security Deposit** (Credit): Adjust the total amount (rent + TDS) against the security deposit.

2. **Payment of TDS to Government:**

If you’re paying the TDS amount to the government, record the payment as follows:

**Journal Entry:**

```
Date Account Debit Credit
-------------------------------------------------------------
[Date] TDS Payable (Rent) 5,175
To Bank 5,175
```

**Explanation:**
- **TDS Payable (Rent)** (Debit): Clear the liability for TDS.
- **Bank** (Credit): Reflect the payment made from your bank account.

### **Summary:**

1. **Rent and TDS Adjustment:**
- **Debit** Rent Expense ₹51,750
- **Debit** TDS Payable ₹5,175
- **Credit** Security Deposit ₹56,925

2. **Payment of TDS:**
- **Debit** TDS Payable ₹5,175
- **Credit** Bank ₹5,175

Make sure to maintain proper documentation for the rent agreement, TDS deduction, and payment details. This will ensure accurate financial reporting and compliance with tax regulations.

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