Swarnava Ghosh (Accountant) 23 September 2020
can you advise the journal entries for part payment for the contractor bill? Suppose Bill's net value is Rs. 100, GST is 12% and TDS is 2 %. But right now I am able to pay Rs. 40 (Net value) + Taxes. Can you suggest the journal entry for making this part payment (Rs. 40) to contractor along with taxes. And what will be journal entry for the remaining amount (Net Rs. 60/-)
yasaswi gomes (My grammar is 💯 good I) 23 September 2020
Initially
Contractor expenses 100
To Payables 100
Later on during payment time
Bills payable 40
GST 12
TDS 2
To Bank 54
To represent the 60₹, there is no entry. The remaining balance will be shown in the payables general ledger.
Remember the journal entry’s first law: record transactions when an event occurs in the day book. Then, transfer them to ledgers. From ledger balances prepare a trial balance and final accounts,
yasaswi gomes (My grammar is 💯 good I) 23 September 2020
Initially
Contractor expenses 100
To Payables 100
Later on during payment time
Bills payable 40
GST 12
TDS 2
To Bank 54
To represent the 60₹, there is no entry. The remaining balance will be shown in the payables general ledger. Remember the journal entry’s first law: record transactions when an event occurs in the day book. Then, transfer them to ledgers. From ledger balances prepare a trial balance and final accounts.
Bad connection, and could not input properly. Hope you got the right answer.
yasaswi gomes (My grammar is 💯 good I) 24 September 2020
Good morning! Initial recognition of payables can include gst amounts as per company policy or else you can directly pay them if your sure if it is paid back before the end of accounting period. I forgot to mention that yesterday.
Rohit Patel 30 September 2020
Initial entry will be:--
Expense a/c. Dr. 100
GST a/c Dr. 12. (input tax receivable)
To Contractor's a/c. 110 (98 + 12)
To TDS payable. 2. (100 * 2%)
And on payment of ₹40
Contractor's A/c. Dr. 44.8 ( 40+ 12% gst)
To C/B. 44.8
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