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Journal entry

praveen kaushik (assistant accounts) (38 Points)

11 February 2012

hi,, i have a query, users please try to solve,

if someone raised a bill to my compnay (Rs. 5000+Service Tax 515). What should be the correct entry for expense book and what entry should i pass when i will pay the bill it should be with the TDS adjustment.

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11 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 11 February 2012

Dear Praveen,

Please pass the following entry

Expense A/c Dr. 5000

Input Service Tax A/c Dr. 515

To Sundry Creditor A/c

(Being bill booked)

Sundry Creditor A/c Dr. 5515

To Cash / Bank A/c 5515

(Being Bill paid)

Regards,
Devendra Kulkarni

praveen kaushik (assistant accounts) (38 Points)
Replied 11 February 2012

Dear Devendra,

Thank for your valuable reply, but please clearify the TDS entry in the above mentioned case,, TDS (Professional) which is to be deducted, when i will paid the funds to settelment.

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 12 February 2012

Expense a/c Dr. 5000

Input service tax Dr. 515

To sundry creditor a/c 4963

To TDS(Prof) Payable a/c 552

(being bill booked)

sundry creditor a/c Dr. 4963

Tds payable a/c Dr. 552

To Cash/bank 5515

(being paymnt mae to creditor and tds deposited)

praveen kaushik (assistant accounts) (38 Points)
Replied 12 February 2012

Thanx for the reply CA Ankur Jain,, suppose i deposite collective Tax (TDS-Professional) only once in a month i.e. 6th of every month, not bill wise, so can just made a entry to Dedit the Sundry Creditor and credit my bank acoount by the actual payable amout which should be after TDS. and make a single entry for all my TDS (professional), can u show that entry also...

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 12 February 2012

Yes Yes offcourse you can make a single entry to square up the tds payable account

Vedant Agarwal (Chartered Accountant) (46 Points)
Replied 12 February 2012

(1) For Expense:-

(a) If your Company is liable to pay Excise Duty or Service Tax :-

Expense A/c Dr. 5000/-

Service Tax Input A/c Dr. 515/-

To Sundry Creditor A/c 5515/-

(b) If your company is not liable to pay Service Tax or Excise Duty :-

Expense A/c--- Dr. 5515/-

To Sundry Creditor 5515/-

(2) For Payment:-

Sundry Creditor A/c Dr. 5515/-

To TDS Payable 552/-

To Cash 4963/-

(3) Now pay TDS:-

TDS Payble A/c Dr. 552/-

To. Cash 552/-

Vijayalakshmi.K (ICWA Final ) (324 Points)
Replied 13 February 2012

Journal entry for TDS:

Party a/c Dr (Since it is recoverable from party we are debiting)

To TDS a/c (Since its our liablity to remit tds to govt we are crediting)

This is the basic journal entry for TDS, if we deduct tds at the time of payment, the above said journal entry will be compounted to payment entry. vice versa for expense booking due entry.

Roshan A (Chartered Accountant) (458 Points)
Replied 13 February 2012


	(1) For Expense:- (a) If your Company is liable to pay Excise Duty or Service Tax :- Expense A/c Dr. 5000/- Service Tax Input A/c Dr. 515/- To Sundry Creditor A/c 5515/- (b) If your company is not liable to pay Service Tax or Excise Duty :- Expense A/c--- Dr. 5515/- To Sundry Creditor 5515/- (2) For Payment:- Sundry Creditor A/c Dr. 5515/- To TDS Payable 552/- To Cash 4963/- (3) Now pay TDS:- TDS Payble A/c Dr. 552/- To. Cash 552/-

AGREED

1 Like

Maneesh Kumar (B.Com M.Com STUDENT CWA IPCC) (507 Points)
Replied 13 February 2012

Expense a/c Dr. 5000

Input service tax Dr. 515

To sundry creditor a/c 4963

To TDS(Prof) Payable a/c 552

(being bill booked)

sundry creditor a/c Dr. 4963

Tds payable a/c Dr. 552

To Cash/bank 5515

(being paymnt mae to creditor and tds deposited)

right

Ravindra kumar (student) (87 Points)
Replied 13 February 2012

Here,

Service tax input , in which group ledger create

Jitesh Golani (student) (60 Points)
Replied 15 February 2012

Originally posted by : Roshan A
	(1) For Expense:- (a) If your Company is liable to pay Excise Duty or Service Tax :- Expense A/c Dr. 5000/- Service Tax Input A/c Dr. 515/- To Sundry Creditor A/c 5515/- (b) If your company is not liable to pay Service Tax or Excise Duty :- Expense A/c--- Dr. 5515/- To Sundry Creditor 5515/- (2) For Payment:- Sundry Creditor A/c Dr. 5515/- To TDS Payable 552/- To Cash 4963/- (3) Now pay TDS:- TDS Payble A/c Dr. 552/- To. Cash 552/- AGREED

Dear Friend, if TDS is applicable you have to deduct it at payment or credit whichever earlier.
The Journal entry which you have passed in point number 1, TDS ought to have been deducted at that stage. Your entries would hold true only when credit and payment is on the same date.

Otherwise , the above entry is absolutely correct.:)