In this scenario, The Company has taken provision for FY 2023-24 for gold coin INR 10000. The Company released the gold coin in FY 2024-25 to a customer, ABC Ltd, who is eligible for a gold coin valued at INR 10,000. First, we deducted the TDS 10%, and after that, we released the Gold coin amount of 9000. The company purchases this gold coin from XYZ Ltd in the amount of 9000. What is the overall Accounting entry?
To account for the gold coin provision, TDS deduction, and release to the customer, you'll need to make the following journal entries:
Journal Entries: 1. *Provision for Gold Coin (FY 2023-24)*: - Debit: Provision for Gold Coin (Expense) - ₹10,000 - Credit: Provision for Gold Coin (Liability) - ₹10,000
2. *TDS Deduction (FY 2024-25)*: - Debit: TDS Payable (Liability) - ₹1,000 (10% of ₹10,000) - Credit: Provision for Gold Coin (Liability) - ₹1,000
3. *Release of Gold Coin to Customer (FY 2024-25)*: - Debit: Provision for Gold Coin (Liability) - ₹9,000 - Credit: Customer's Account (Asset) - ₹9,000
4. *Purchase of Gold Coin from XYZ Ltd (FY 2024-25)*: - Debit: Gold Coin (Asset) - ₹9,000 - Credit: XYZ Ltd (Liability) - ₹9,000
Overall Accounting Entry: The overall accounting entry would be: - Debit: Provision for Gold Coin (Expense) - ₹10,000 (FY 2023-24) - Debit: TDS Payable (Liability) - ₹1,000 (FY 2024-25) - Debit: Gold Coin (Asset) - ₹9,000 (FY 2024-25) - Credit: Provision for Gold Coin (Liability) - ₹10,000 (FY 2023-24) - Credit: Customer's Account (Asset) - ₹9,000 (FY 2024-25) - Credit: XYZ Ltd (Liability) - ₹9,000 (FY 2024-25)
Is Tds payable debit entry or credit entry??
As per my knowledge TDS payable credit entry
YOGESH KAPOOR AND ASSOCIATES
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