How to pass journal enty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 Our client sells car-insurance policies. The company gives 4% commission on policies sold. I want to know that what journal entry is to be passed, because there is 2% deduction of TDS, and also, 10.3% Service Tax element. How to pass the journal entry for TDS and Service Tax Element?

For example, policies sold, and its 4% is1,40,000 and 10.3% Service Tax is14,420. Total is1,54,420.

Of this1,54,420 TDS of 2% is 3088, and net amt receivable is1,51,331.

Anybody please tell me, how to pass journal entry for it. Thanks.

Rajnish Singh

Rajnish Singh (Expert)
Follow

12 November 2011 police seller is agent of insurance company so service tax doen't matter for them. only he book commission and tds .

company dr 154000
to commission received a\c

second

cash / bank dr
tds receivable dr

to company a\c