Income tax refund entry in proprietary firm

This query is : Resolved

Hetvi (Querist)
Follow

02 October 2013 respected Sir,, how I make entry when our TDS receivable is 100 and after assessment we get 105 out of this 95 as a refund and 10 as interest on incometax. and in other case 100 as refund and 5 as interest on incometax.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

02 October 2013 For interest amount give credit to the profit and loss account as interest on IT refund and for the TDS amount give credit to the capital account(in case if you disclosed in your balance sheet separately for TDS receivable then give credit to such TDS receivable account).

OM SAI SRI SAI JAI JAI SAI