Rectification entries

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2011 Dear all,
I maked a entry agst. rent due for the m/o April 10. Which has already entered in 2009-10 after deducting TDS and taken benefits of Services Tax. Now i want to know that what will be rectification entries against that entry. I have again submit TDS and taken benefits of service tax for that entry. I mean it has entered double time one is for F.Y. 09-10 and 2nd is 10-11.
Entry was following
Rent Dr 19000
Service Tax Paid Dr 1957
Tds Payable on Rent(Company) Cr 2095 Party(Creditors) Cr 18862
Now I want to explain one more things that I want to Dr tds amount to party and reverse of service tax also. again i want to repeat that for the month of April 10 office rent has already booked in march 10 and paid now it has again entered in months of April 10 Please help me regarding that rectification entries In my view the entry will be following.
1st entry
party Dr 2095
To Tds payable on rent Cr 2095
2nd Entry
Party Dr. 20957
To Service Tax paid Cr 1957
To Rent Cr.19000
Is it correct or not if not then please explain another entry. Thanks

U S Sharma

U S Sharma (Expert)
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18 July 2011 in a nutshell you have paid one month extra rent, why not u keep this as advance rent and adjust in current month.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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19 July 2011 Just you reverse the entry passed in 2010-11 and adjust the TDS against the rent in coming months.

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2011 Sir i mean reverse entry will be following
Party Dr. 20957
To Service Tax paid Cr 1957
To Rent Cr.19000

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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20 July 2025 our situation:
Rent for April 2010 was already accounted in FY 2009-10 (correct year).
Now mistakenly, the same rent, TDS, and service tax have been entered again in FY 2010-11.
You want to reverse this duplicate entry in FY 2010-11 correctly.
Original duplicate entry (in FY 2010-11):
Rent Dr. 19,000
Service Tax Paid Dr. 1,957
TDS Payable on Rent Cr. 2,095
Party (Creditors) Cr. 18,862
Correct rectification (reversal) entries:
You want to reverse the above duplicate entry, so:

Reverse Rent and Service Tax:
Party (Creditors) Dr. 20,957
To Rent Cr. 19,000
To Service Tax Paid Cr. 1,957
Reverse TDS Payable entry:
Since TDS was credited earlier, now debit party and credit TDS payable:

Party (Creditors) Dr. 2,095
To TDS Payable on Rent Cr. 2,095
Explanation:
By debiting the party account you reduce the liability toward the party (since you mistakenly accounted for an extra rent).
By crediting rent and service tax accounts, you reverse the expense recognition.
By reversing TDS payable, you clear the TDS liability that was booked twice.

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