Journal entry for tds on commission received

Srikanth D (Occupied.) (168 Points)

16 July 2013  

The journal entry for commission rceived after deducting TDS is

Bank/Cash a/c Dr.

TDS a/c          Dr.

   To  Commission Received a/c.


But if commission is not received in cash/bank and the party account is debited, what will be the entry?

Case: ABC Engineers receives commision from XYZ after TDS, but XYZ did not give commission either through cah or bank. Previously, XYZ is a creditor for ABC Engineers and also ABC perfoms some services to XYZ , thus XYZ also becomes a debtor for commission part, so, when commission is recieved of amount say Rs.1000, ABC passed a entry like this :

XYZ a/c          Dr. 990

TDS a/c          Dr. 10

   To  Commission Received a/c.1000

Is this correct?