Journal Entry for Contractor payment

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