Dear Learners, Can you give a detailed explanation for a journal entry :Rent Received or Paid including TDS Paid or received (In each case). How to treat in finalisation of accounts(both sole proprietor and companies)??
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Quick Summary
This discussion clarifies the correct journal entries for transactions involving rent paid or received, including the associated Tax Deducted at Source (TDS). It provides specific debit and credit entries for both scenarios, detailing how to account for TDS receivables and payables. The explanation also touches upon the treatment of these entries during the finalisation of accounts for sole proprietors and companies, and briefly considers the impact of GST.