Tds entry & adjustment entry of tds

when you need to pay towards Rent say the entry is

Rent a/c      dr  240000 (say)

                      to Bank a/c              216000

                      to Tds payable a/c      24000(10% of rent payable)

when the Tds is deposited with interest

Tds payable a/c         dr          24000 

Interest on Tds a/c     dr          240

                                      To bank a/c      24240

Here Tds payable is created as current liabilities and Interest on Tds is created as Indirect expenses

In case of receivable

Bank a/c                       Dr           216000

Tds for FY  2016-17       Dr             24000

                                        To   Rental income   240000

here Tds for FY 2016-17 is created as Current asset

Thank You

1 More Querry Intrest On Tds & Intrest On Tds Payble Is Under which Head

Awaited For Your Reply .

Thank you Soo Much.

Regards,

Neha Raut

neharaut0214 @ gmail.com

 

interest on Tds paid is under Indirect expenses

interest on Tds payable is under current liabilites 

Thank you soo much