TDS provision

u r rite dear .........i totally agree wid u

The provision is made for those liabilities which becomes due as expenses according to accrual or mercantile basis of accounting but not due for payment according to periodical payment systems like telephone bills becimes due and paid on or after 10th of every month.

Whereas outstanding expenses are those expenses for which payment is due but not paid till the balance sheet date like salary becomes due on the last working day.

Yea you are right in your point that known liability provision is made on actual basis and treated as outstanding payment. But my dear interest expnse is of such type of expense for which we do not make any provision. Instead we make the following entry

Interest on outstanding A/c (Expense A/c)   -- -- -- -- Dr.

        To Outstanding A/c (Loan A/c)             -- -- -- -- Cr.