Head for booking a expense

What is the right head for booking the following expense in the books of accounts:-

A construction company gives a subcontract to complete a project and deduct TDS on the contract basis & make payment. What will be the right name of the expense head for Such payment?

Replies (2)

paid to sub contractor 

Sumiti ji,

 

Like other creditors, the sub-contractor ledger to be created along with a ledger for TDS.

Entry for Booking  wud be :

Labour charges (expense head)                                1000.00

To Sub-Contractor – TDS  a/c.                                        10.00

To Sub-contractor A/c.                                                   990.00

 

Entry for payment :

Subcontractor A/c

To Bank/Cash

TDS remittance :

Sub-contractor TDS A/c.

To Bank

 

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