ACCOUNTING ENTRY RELATED TO TDS AND ITS BEST CLOSING ENTRY.

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PARAMJIT SINGH (Querist)
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22 January 2009 RESPECTED SIR, THIS IS PARAMJIT SINGH STUDENT OF CFA. SIR I HAVE QUERY REGARDING ACCOUNTING ENTRY. THE QUESTION IS AS UNDER:
A PERSON "ABC" HAVING HIS PROP. CONCERN NAMED AS "ABC & cO".
"ABC & CO" DOING SOME JOB WORK OR U CAN SAY PROVIDE SERVICES TO "XYZ LTD" AN INDIAN COMPANY FOR COSTING RS 100000/- on dated 30/09/08. and on 25/10/08 "abc & co" received the amount 89700 rs after TDS (amount rs 10300) deducted by "xyz ltd".
so what would be the entry in books of accounts of "abc & co" (the prop. concern.) in cash mathod of accounting and aso in merchantile method of accounting.

also at the end of financial year the how to treat the amount of 10300 (TDS deducted) which is shown as an asset (loan and advancs) for "abc & co". as per IT act the prop. concerns are not elligile for assesments for income tax where as propreitor is self elligible for this as it is his business income.
kindly ples tell me the valid accounting entries in both cash and merchantile system of accounting for account books for "abc & co". and also the adjustment entry for TDS.
kindly plese reply my querry

thanks
PARAMJIT SINGH.
U CAN MAIL ME AT PREAHALTRADES@GMAIL.COM

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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22 January 2009 Please be breif and concious

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PARAMJIT SINGH

PARAMJIT SINGH (Querist)
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22 January 2009 sIR IT IS CLEAR THAT THE ENTRY WOULD PASSED IN THE BOOKS OF ACCOUNTS OF "ABC & CO" FOR THE AMOUNT RECEIVED AFTER DEDUCTING TDS BY THE "XYZ LTD" AN DOMESTIC COMPANY. AND THE TREATMENT OF TDS AT THE CLOSING OF FY.
WILL PROPRITOR SELF CAN CLAIM TDS REFUND FOR MAKE TO NAME OF HIS TRADE NAME I.E "ABC & CO" (WHICH IS PROP. CONSERN).

PLESE RPLY

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Mukund

Mukund (Expert)
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22 January 2009 1 xyz a/c dr Rs.100000
Income A/c cr Rs.100000
2 Bank/Cash A/c DR 89700
Xyz A/c Cr 89700
3 TDS A/c Dr 10300
Xyz A/c Cr 10300

You Can Transfer TDS to Prop Capital A/c after the end of Year or U Can Show the TDS Amt in Current Assets/Loan & Advances untill u get Asst.Order for the same Year

CA Anil Jain

CA Anil Jain (Expert)
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02 March 2009 Propriector will definitely claim / utilise the Tax deducted by the XYZ Ltd.
why are u getting so upset.

The ITR is filed by the Prop. with his PAN and show the Income from Business u/h PGBP and will utilise the TDS deducted , and if entire amount not utilised, you will get Refund.