journal entry for TDS

Thank you.

For Expenses Due,

Expenses A/c ......Dr

      To Expenses Payable a/c

      To TDS Payable a/c

For Payment of Expenses:

Expenses Payable ......Dr

       To Bank a/c

For Payment to TDS:

Tds Payable A/c ........ Dr

       To bank a/c

Hope this answers your question.

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