Rent accounting

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naveen prabhu (Querist)
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03 February 2012 My land lord had sent a rent receipt for 2,00,000/- for the month of nov'11 rent.
Out of that i have deducted 100000/- for painting & whit washing. Please tell me how to pass a journal entry since i have paid only 1,00,000/- as rent to my landlord but i have deducted 10% tds on Rs.2,00,000/-

Naveen Prabhu

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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03 February 2012 At the time of expenses on behalf of the landlord you paid the entry is as follows.
1) Land lord a/c Dr 100000
To Bank/Cash a/c 100000
(Being painting & white washing expenses incurred on behalf of land lord)

At the time of payment of rent and deduction of TDS

2) Rent a/c Dr 200000
To Land lord a/C 100000
To TDS a/c 20000
TO Bank/Cash a/c 80000
(Being rent paid and TDS deducted and the balance due from land lord adjusted in the rent)

Instead of the above two entries the followings also can be made
1) on the date of payment for painting and white washing
Rent a/c Dr 100000
To Bank/Cash a/c 100000
(Being rent paid by way of painting and white washing on behalf of the land lord)
2) on the date of payment of rent and tds deduction
Rent a/c Dr 100000
To TDS 20000
To Bank/Cash a/c 80000
(Being balance rent paid and tds deducted on rent including previously/already paid)

But i suggested first type of entries because it very clear and acceptable no problem arises for tds query. For the second type of entries you have to liable for penalty to late deduction of TDS if the painting etc... charges paid and the actual rent paid dates are different.
OM SAI SRI SAI JAI JAI SAI

naveen prabhu

naveen prabhu (Querist)
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03 February 2012 Thank you very much sir.

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