Journal Entry in case of a transaction on which TDS Paid/Received?

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)??
Replies (2)
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.

Rent Received :

Dr. Customer Account - Rs. XXXX
Cr. Rent Received - Rs. XXXX

TDS Receipts :

Dr. TDS Receivables - Rs XXXX
Cr. Customer Account - Rs XXXX


Rent Paid :

Dr. Rent Paid - Rs. XXXX
Cr. Party Account - Rs. XXXX

TDS payable :

Dr. Party Account - Rs. XXXX
Cr. TDS Payable - Rs. XXXX


Any doubt then ask again...
Received :
Bank Dr. Xxx
TDS Dr. xxx
To Party/Tenant xxx

Paid:
Party/Owner Dr. Xxx
To TDS xxx
To Bank xxx



If GST is also there :
Then in tenant's book
GST payable Dr. 500
To Bank 500


I think this would be correct one?

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