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Journal Entries

sayad (Executive) (179 Points)

22 October 2020

I am Small Civil Contractor . Can someone help me with Jornal Entries

1 } for work executed for Goverment work i receive payment after deduction of the following

GST / Security Depodit / Labour Cess / TDS

for Ex 50000 Rs GST 12 % 6000 = 56000 Total Deduction Security Deposit 6000 labour Cess 500 GTS 2 % TDS 2 %

what Journal i sud pass when i get the work with about charges and when i recieve money after above deduction

and sometimes i keep EMD and i get refund from Goverment when i dont get tender

what entry to pass for EMD deposit paymnet to goverment and for refund

and Advance received from the customer and adjustment after making final bill to the customer which includes TDS

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5 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14163 Points)
Replied 22 October 2020

Pass booking entry for order you receive form the GOVT

GOVT A/c Dr

To Civil Work (sales) A/c Cr

To CGST A/c Cr

To SGST A/c Cr

( Booking entry of civil work (sales ) )

GOVT A/c will be under TRADE DEBTORS ,Asset side balance sheet

Civil work A/c will be under Sales P&L account

Then Payment received form GOVT A/c

Bank A/c Dr

Security Deposit A/c Dr

Labour Cess A/c Dr

TDS on contract A/c Dr

To GOVT A/c Cr

( Being payment received after Deductions form GOVT )

TDS @ 2% on 50000/-

Security Deposit under Current asset , Labour Cess & TDS taxes under Advances assets side .

GST amount you have Deposit with GOVT A/c , if you are registered under GST

so entry will be

CGST A/c Dr

SGST A/c Dr

To Bank A/c Cr

(Payment of GST to GOVT account )

when you pay EMD Deposit

EMD Deposit A/c Dr

To Bank A/c Cr

( Being EMD Deposit paid to GOVT account )

Refund of Deposit entry

Bank A/c Dr

To EMD Deposit A/c Cr

( Receipt of Deposit )

Example - Civil work is of Rs 100000/- , you received advance 50000/- and balance will be at time of invoicing after deduction of TDS

Bank A/c Dr 50000/-

Advance from Trade Debtors A/c Cr 50000/-

( being advance form Customer )

Advance from Trade Debtors A/c Dr 50000/-

Bank A/c Dr 49000/-

TDS on Contract work A/c Dr 1000/-

To Civil work ( Sales) A/c Cr 100000/-

(Being balance payment received after deduction of TDS @ 2 % )

sayad (Executive) (179 Points)
Replied 24 October 2020

Thank u so much

what if i have paid professional fees to Engineer for consultation i have received bill for paymnet as below

Total Amount to be payable 80000 Rs + 18 % GST = ( 80000 + 14400 GST ) 94,000

Advance to be payable of total amount 30000 Rs and balance to be paid later

I have deducted 2 % TDS for advance 30000 - 600 TDS = total paid 29400

what entry to pass

Ada

prasad Nilugal ( GST Practitioner & Accounts ) (14163 Points)
Replied 24 October 2020

Pass entry as follows for Advance payment made to engineer

Advance professional fees A/c Dr 30000/-

To Bank Cr 29400/-

To TDS payable Cr 600/-

( Being advance payment made after deduction of TDS @ 2% on 30000/- )

Advance professional fees under Loans and Advances - Assets side in Balance sheet

TDS payable under Duties & Taxes liability side

TDS payment entry above deducted

TDS on professional fees A/c Dr 600/-

To Bank A/c Cr 600/-

( Being TDS payment to GOVT account )

Booking entry

Professional Fees A/c Dr 80000/-

CGST A/c Dr 7200/-

SGST A/c Dr 7200/-

To Trade Creditors A/c Cr 93400/-

To TDS payable Cr 1000/-

( professional fees payable and TDS to be deducted on 80000/- @ 2% , however only on 30000/- @ 2% deducted , on balance 50000/- TDS of Rs 1000/- payable )

when you pay balance payment

Trade Creditors A/c Dr 93,400/-

To Advance professional fees A/c Cr 30,000/-

To Bank A/c Cr 63,400/-

( Balance payment made cheque no ---- dt ----)

Balance TDS payment entry

TDS on professional fees A/c Dr 1000/-

To Bank 1000/-

( TDS deducted deposited with GOVT account)

Note- In 1st query above in the last example on Advance TDS should be 2000/-( 100000/- @ 2%) instead of 1000/- , also payment 48000/- instead of 49000/- please correct .