How to make entry for

If your Interest amount is 4039 then first entry will be correct... as its your basic earning

Dear Divya,

Income has to be booked with Gross amount, therefore in present case entry should be -

Sweep Deposit/Bank a/c......Dr  Rs. 3,639

TDS A/c.....................................Dr  Rs. 400

                       To Interest Income                        Rs. 4,039

Thank You Poornima & Amir

Dear Divya,

welcome........