298 Points
Joined February 2021
ACCOUNTING ENTRIES RELATING TO TAX DEDUCTED AT SOURCE ON RECEIPT OF INCOME :
In the second part of this post, we are discussing accounting entries relating to the receipt of income & deduction TDS on it by the other party.
We are going to understand the entries with the help of example:
Following entry is passed:
Person A/c. Dr. 90000
TDS Receivable A/c. 10000
To Interest Income A/c. 100000
When we are receiving the interest income then following below mentioned entry is passed. After passing the entry the Party account becomes NIL.
Bank A/c. Dr. 90000
To the person A/c. 90000