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
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
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.
CAclubindia
