Related to tds

This query is : Resolved

Rakshita Vira (Querist)
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16 August 2013 Suppose we have made the
provision of unpaid audit fees of Rs. 54000
and TDS payable Rs.6000
But what should be the entry when the actual bill is received of Rs.60000?

Aditya Agarwal

Aditya Agarwal (Expert)
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16 August 2013 The journal entry for the above implication is as follows:-
1) When provision is made

Audit fees A/C (PL) Dr
To TDS Payable (BS) Cr
To Provision for Audit fee(BS) Cr.

2.) At the time of making payment. i.e. at the time receiving the bill.

TDS Payable (BS) Dr.
Provision for Audit fee(BS)Dr.
TO Bank A/c Cr.

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Rakshita Vira

Rakshita Vira (Querist)
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16 August 2013 Actually my meaning was that
we made provision on 31 March,2013
and the bill is received on 14 August,2013

So will there be any entry for the same.
If so pls guide

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 August 2013
What entry you have passed on 31st March for TDS payable Rs.6000?

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CA. Brijesh Baranwal

CA. Brijesh Baranwal (Expert)
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17 August 2013 Prior period expenses Dr. 6.000
To Party (CA Firm) 6,000

Rakshita Vira

Rakshita Vira (Querist)
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19 August 2013 Audit Fees.....Dr 60000
To Unpaid Audit Fees 54000
To TDS Payable 6000

Is this wrong?
Do I need to pass any further entry while receiving the audit bill?

Aditya Agarwal

Aditya Agarwal (Expert)
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20 August 2013 Your entry is correct.

No such entry is required at the time of receiving the Bill.

Only when you make the payment, you are required to pass the following entry:-

Unpaid Audit fees A/c Dr. 54000
TDS Payable A/C Dr. 6000
To Bank Cr. 60000

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