Net Receivables in Balance Sheet

A/c entries 346 views 3 replies

rutuja prabhune

107 Points Posted on 21 April 2020

How to Show Net Receivables (After deducting taxes,discounts and provisions etc.) on Asset side in Balance Sheet

Posting one more query here,which i had wrongly posted in Others->Others forum:

"A tally ledger can not be viewed in voucher"---

In Tally 9,a ledger created "TDS-Professional-Receivable-2019-20", can not be viewed in Sales Voucher.
The ledger hierarchy created in tally with groups and ledgers is as follows:
Assets
--Loans & Advances (Current Assets)
----Advance Taxes
------Advance TDS Receivable
--------TDS Receivable-2019-20
----------"TDS-Professional-Receivable-2019-20"
Note: Required F12 Settings are enabled

Replies (3)

yasaswi gomes

My grammar is 💯 good I

7301 Points Posted on 22 April 2020

Taxes will be on sales and purchases, and not on receivables.If receivables are 10,000, then net receivables will be

Receivables a/c 9000

Provision @ 5% a/c 500

Discount allowed a/c 500

To Sales a/c 10000

As far as I can remember, tax is included in sales entry. That will be automatically carried to GST. We don’t pass tax TDS receivable entry because sales voucher already included that tax amount and passed to receivables. For example sales 9000, and output taxes receivable=1000 and hence total sales= 10,000.

Similarly, discount is allowed after taxes and before taxes. It is recorded on per sale basis. So no need to include it in the above entry.