I am doing statutory audit of a company. My query is regarding how to close TDS receivable of earlier years shown in trail balance. For provision for tax they are making the following entries:
Profit and loss a/c DR 52737
to provision for tax 52737
this entry is correct. but then they are transfering it to TDS receivable.
Provision for tax DR 52737
to TDS receivable 10-11 52737
In this manner provision for tax legder bal is nil. but stll the company having TDS asset shown as
TDS receivable 10-11 174691dr ,
TDS receivable 09-10 16821 dr ,
TDS receivable 11-12 180000 cr
i want to close the tds receivable 10-11. how to proceed????
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