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achal

achal (Querist)
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23 November 2010 what should be entries for interest paid

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 November 2010 1) Interest A/c Dr
To Party....

2) Party A/c Dr.....
To TDS payable(If TDS Attracted)

3) Party A/c Dr......
To BAnk...

Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 November 2010 one for booking the exenses second for deduction of TDS if any and third for making payment.

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CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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23 November 2010 If paid
Debit Interest
Credit Cash / Bank

If accrued & then paid,
Dr.Interest
Cr. Party
pass a JV on accrual

when paid
Dr.Party
Cr. Cash / bank

If interest exceeds the limit, also deduct TDS at the time of JV or Payment whichever is EARLIEST.