Accounts

This query is : Resolved

nag_v_k@yahoo.com (Querist)
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16 July 2014 i have received on bill from house keeping and made entry for the above inv as below

debit expense
debit service tax 12.36

credit vendor
credit tds 2%
debit vendor

anyone can explain how account are effecting in prfit loss account and blance and explain each account how affeted in financel statment

Ganeshbabu K

Ganeshbabu K (Expert)
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16 July 2014 Expenditure will be increased to the amount debited to profit and loss
.
.
service tax input availed
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tds deducted from vendor payment hence it will be appear as tds payable as other current liabilities in balance sheet
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balance amount after deducting will be transfered to vendor which will be grouped under trade payable (Sundry creaditors for expences)