Tds receivable entry

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This query is : Resolved

CA PAYAL GAJJAR (Querist)

20 September 2014 hello,

what is the entry of tds receivable when I am following cash accounting system although income is not yet received only accrued??

Yogesh Shukla

Yogesh Shukla (Expert)

20 September 2014 CASH BASIS
Revenues are recorded when they are received, which may be before or after they are earned.

Expenses are recorded when they are paid, which may be before or after they are incurred.

Financial statements reflect revenues and expenses based on when transactions were entered rather than when revenues were earned or expenses incurred.

No receivables are recorded.

No payables are recorded.

No method of tracking partial payments is available.

ACCRUAL BASIS

Revenues are recorded when they are earned, which may be before or after they are received.

Expenses are recorded when they are incurred, which may be before or after they are paid.

Financial statements match revenues to the expenses incurred in earning them, and more accurately reflect the results of operations.

A receivable is recorded when payment is not received at the point of sale.

Payables are recorded when payment is not made at the time of purchase.

Revenues and expenses are recorded in full, even though partial payments may be made over extended time periods.

CA PAYAL GAJJAR

CA PAYAL GAJJAR (Querist)

20 September 2014 Thanks, Yogesh

Its means I need not to record income and and also tds receivable. Then will I get tds adjusted against my tax payable for tax purpose???

My cliet follows cash accounting and also show FD Interest on accured basis and relevantly shows TDS RECEIVABLE on interest inocome.

Plz do needful

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