DIRECT DEPOSIT CASH IN BANK FROM OTHER PARTY

This query is : Resolved

kamal (Querist)
Follow

16 August 2010 PARTY DIRECT DEPOSIT CASH IN BANK UNDER CORE BANKING
I DO ENTRY
BANK A/C DR.
TO PARTY A/C

I AM RIGHT AS PER ACCOUNTING STANDARD BECAUSE I DONT HAVE PHYSICAL CASH

PLEASE SUGGEST ME I AM RIGHT AS PER ACCOUNTING STATNDARDS AND INCOME TAX ACT

CA Punit

CA Punit (Expert)
Follow

16 August 2010 You are right..
Its simple,
Debit... what comes in (Bank bal)
Credit... the payer

its also a merger of 2 entries
Cash Dr.
To Party
&
Bank Dr.
To Cash

kamal

kamal (Querist)
Follow

17 August 2010 Punit Sir Thanks for reply,

but income tax in this case

Upgrade to CAclubindia Pro. Subscribe Now!

CA Punit

CA Punit (Expert)
Follow

17 August 2010 the accounting entry has nothing to do with income tax.
....only if the party has deposited the amount net of TDS i.e. after deducting TDS then the entry will be,
Bank... Dr.
TDS Receivable... Dr.
To Party