Tds asset and self assessment tax

sujata (article clerk) (37 Points)

07 June 2013  

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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