TDS Receivable Reconciliation March 2024

A/c entries 274 views 2 replies

CRR RR

42 Points Joined October 2024

Sir

Good after noon

A Company is providing Job work services, Every month they are raising a bill of Rs.1,00,000 and at the time of raising Invoice the entry is (Ignoring GST in Entry)

Sundry Debtor dr- 1,00,000

To Job work Sales cr - 1,00,000

While getting the receipt the entry will be

Bank Dr 98,000

TDS Receivable Dr 2,000

To Sundry debtor Cr 1,00,000

Every month the entries are posting like this

As the Customer deducted TDS on accrual basis in March 2024, TDS receivable as per 26 AS is 24,000 Rs (12*2,000)

However we are recognising TDS Receivable on Receipt basis in our books,hence it is Rs.22,000 (11*2,000)

While reconciling TDS with Form 26 AS v.entries in tally prime we are getting Rs.2,000 difference

Request you to advise what kind of entry we can do for this Rs.2,000 difference (March 24 TDS )

Thanks

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8979 Points Joined December 2011

To account for the ₹2,000 difference in TDS receivable, you can pass an adjusting entry.

Adjusting Entry

1. _Debit_: TDS Receivable (₹2,000) 2. _Credit_: Profit & Loss Account (₹2,000) Rationale The ₹2,000 difference arises from the mismatch between the TDS receivable as per Form 26AS (₹24,000) and the TDS receivable recognized in your books on a receipt basis (₹22,000).

By passing this adjusting entry, you are:

1. Increasing the TDS receivable account to match the Form 26AS amount.

2. Reducing the profit for the year by ₹2,000, as this amount was not accounted for earlier.

Additional Considerations - Verify that the TDS receivable account is correctly reflected in your balance sheet. -

Ensure that the adjusting entry is properly disclosed in your financial statements. -

NARENDRA

ACCOUNTS MANAGER

2186 Points Joined December 2012

@ CRR RR

I assume you have already filled your ( companies Return ), so when the process was going on I am sure your auditor checked 26 AS & or AIS before filling the return & at that time you were having a chance to book that entry because your book was open. This is the normal process ,what I am saying. Now first of all you check whether your auditor takes the part of tds of that particular entry or not?? Whether you booked that job work entry in the previous year or not ?? If yes, then you will have to make 2 adjustment entries Dr. to Tds Receivables & Cr. to the party , which will be adjusted in your Income tax payable or refundable.