Hello 2 all,
I have an doubt on this entry is it right? pl. answer.....
My query is that if my company is paying rent say for Rs. 46K directly from h.o through cheque so entries would be at HO level and Branch level as follows:
AT BRANCH LEVEL:
Office Rent Dr. 46K
Head office A/c Cr. 46k
AT HO LEVEL:
Branch A Dr. 46K
TDS Payable Cr. 4.6K ( @ 10%)
Bank A/c Cr. 41.4k
and on payment TDS Payable Cr. 4.6k
Cash/Bank Cr. 4.6k
It is wrong.
The correct series of Entries is as follows. Let us assume that this rent is payable to Mr.X
Recognition of Expense in Branch Books
Office Rent A/c Dr 46,000 /-
T.D.S Payable A/c Cr. 4,600 /-
Mr. X A/c Cr. 41,400 /-
Head office will Pay Rs. 41,400 /- to Mr.X and Debit Branch A/c
Branch A/c Dr. 41,400 /-
Bank A/c Cr. 41,400 /-
On Payment by the Head-office, Branch will pass transfer entry as follows
Mr. X A/c Dr. 41,400 /-
Head-Office A/c Cr. 41,400 /-
On Payment of T.D.S
T.D.S Payable A/c Dr. 4,600 /-
Bank A/c Cr. 4,600 /-
Hope this helps you
yeah..its correct
| Originally posted by : bukbuk | ||
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It is wrong. The correct series of Entries is as follows. Let us assume that this rent is payable to Mr.X Recognition of Expense in Branch Books Office Rent A/c Dr 46,000 /- T.D.S Payable A/c Cr. 4,600 /- Mr. X A/c Cr. 41,400 /- Head office will Pay Rs. 41,400 /- to Mr.X and Debit Branch A/c Branch A/c Dr. 41,400 /- Bank A/c Cr. 41,400 /- On Payment by the Head-office, Branch will pass transfer entry as follows Mr. X A/c Dr. 41,400 /- Head-Office A/c Cr. 41,400 /- On Payment of T.D.S T.D.S Payable A/c Dr. 4,600 /- Bank A/c Cr. 4,600 /- Hope this helps you |
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But if TDS is centralizied from Ho level then????
CAclubindia
