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Accounting Journal Entries of Differ TDS Amount

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Jigar

B.Com

119 Points Posted on 27 November 2021

TDS 1st QTR.

Paid to XYZ Rs.5000 after deducting TDS Rs.250 (In Place of Rs.500) = Rs.4,750 By Cheque.

While Depositing TDS in Bank full Amount Rs.500 was deposited and returned filed.

TDS 3rd QTR

The mistake done in 1st QTR. was reallized.

Paid again Rs.5000 to XYZ after deducting TDS Rs.500 (of 3rd QTR) & Rs.250 (of 1st QIR) = Rs.4,250 by Cheque.

While Depositing TDS in Bank only Amount of Rs.500 was deposited and returned filed.

NOW

How to pass their journal entries ?????
How to adjust TDS Payable Account as per their QTR'S???
How to set XYZ's Ledger Account???

Replies (2)

Quick Summary

This discussion addresses a common accounting challenge where the incorrect TDS amount was deducted and deposited. The user explains a scenario involving a TDS shortfall in the first quarter and a subsequent attempt to rectify it in the third quarter by deducting both the current and previous quarter's TDS. The core of the discussion revolves around finding the correct journal entries to accurately reflect these transactions, adjust the TDS payable account for each quarter, and properly update the supplier's ledger.

Varshit Shah

Self Employed

345 Points Posted on 27 November 2021

Entry 1 :

Expenses A/c.........Dr.......5000
To XYZ

Entry 2 :

XYZ A/c..........Dr......500
To TDS

Entry 3 :

XYZ A/c...........Dr.....4750
To Bank

Entry 4 & 5 will remain same as Entry 1 & 2.

only amount at Entry 6 will change to 4250