Tds recievable entry for rent accrued !!???!

Hi all,

Pls clarify the following situatuion...

A company recieves Rental Income Rs.10900/- p.m from July onwards (therefore,9 months)

Rent recieved is Rs.9810 every month after TDS of Rs.1090/-

For march rent will be recieved on April. Therefore, provision is to be made for Accrued rent.

But the company has made the following entries :

Bank a/c Dr.     Rs.9810

To Rent recieved a/c     Rs.9810

( for 8 months )

On March :

1) Rent recievable a/c      Rs.9810

     To Rent recieved a/c      Rs.9810

2) Tax Deducted at Source a/c      Rs.9810

      To Rent recieved a/c                  Rs.9810.

 

Is this right ?

 

Replies (1)

I assume TDS has been accounted for past 8 months.

 

Regarding March, check the amount of TDS in 2nd entry.

 

Plus, unless the deductor deposits TDS as March, company might not be able to claim for that AY, otherwise it is correct as per me.

 

Next Month:

 

Party A/c Dr.

To Rent Receivable A/c

--

Bank A/c

To Party A/c

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