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Accounting for the tranction

753 views 4 replies

Guest

one company doing labour job

while receiving payment form debtors some part cut for tds some part is reamains for

Retention which he gets after the project is over

my question is hw should he account for this transaction weather he shows he retention amount

in another accountant head or keep it as it is

Replies (4)

praveen

Chartered Accountant

6971 Points Posted on 18 February 2013

For eg. Rs.1,00,000 is part of the labour job. 10% is retention deposit. Following entry can be passed

Bank Account / Sundry Debtor A/c ----= Dr Rs.89000

TDS A/c ---------------Dr Rs.1000

Rentention A/c -----------Dr Rs.11000

To Income Account Rs.1,00,000

CA Sanjay Bag

CHARTERED ACCOUNTANT

3350 Points Posted on 19 February 2013

Logically correct answer.

Guest

i compines rentention amount dont show in entry in that case hw to mantain the o/s statement of debtors

V P Narasimhan

Accounts Manager

795 Points Posted on 19 February 2013

Dear

I suggest the following: (you will be having more Debtors/Customer) Hence if have suffix with TDS & Retention Money viz., TDS Receivabele XYZ & Retention Money XYZ at the end of the year you can able to extract customer wise. In case of TDS you can check with AS26 from Income Tax web site also. Other wise a huge amount will be shown in TDS & its very difficult to track at the end of the year & unless if you give details in narration.