28 March 2015
I had given loan of Rs.1000000 to a company.Co.gives interest of Rs.10000. SO today i have received a cheque of Rs.1009000 (after deducting tds). Please tell me whether following entry is correct:- Bank Dr.........................1009000 TDS on Interest.................1000 To Loan............................1000000 To Interest received on loan.......10000
28 March 2015
But some old accountants are saying the following entries:- Co. Dr.......................9000 TDS on interest..............1000 To Co...............................10000
Bank Dr........................1009000 To CO................................1009000
28 March 2015
both the way entries are correct and give the same effect. he may suggest due to track the TDS receivable with partywise. you can choose any one option