Purchases enrty
This query is : Resolved
06 May 2014
Experts,
The entry of Purchases is:
purchases dr.100
to creditor 100
AT the Time of Payment:
Creditor a/c dr.100
to bank a/c 90
to Tds A/c 10
Is this entry is also correct:
Purchases dr.100
to creditor 90
to tds payable 10
at the time of payment
Creditor a/c dr. 90
to bank a/c 90
Please explain which entry is appropriate as both gives same impact OR any other reasons.
The entry of Purchases is:
purchases dr.100
to creditor 100
AT the Time of Payment:
Creditor a/c dr.100
to bank a/c 90
to Tds A/c 10
Is this entry is also correct:
Purchases dr.100
to creditor 90
to tds payable 10
at the time of payment
Creditor a/c dr. 90
to bank a/c 90
Please explain which entry is appropriate as both gives same impact OR any other reasons.
06 May 2014
first u explain on purchase how u pay tds as tds is paid mostly on servcies?
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06 May 2014
assuming that TDS is applicable, the second entry more effective as TDS is payable on earlier of credit to client or payment.
06 May 2014
Secon entry is more Correct and alternatively u can do second entry as like this:
Purchase A/C Dr. 100
Creditors A/c Dr (TDS Amount) 10
To Creditors A/c 100
To TDS Payable 10
Purchase A/C Dr. 100
Creditors A/c Dr (TDS Amount) 10
To Creditors A/c 100
To TDS Payable 10
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06 May 2014
Actually it was a service as client has classified it as purchases (service = Input services ) , so I just put purchase instead of service provider.
06 May 2014
both the above person have given correct ans as 2nd is correct entry.
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06 May 2014
go for the second entry. and deposit tDS accordingly.
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