Q. A sales goods to B for. Rs. 100000/- on 60 days payment terms B pays to A after 30 days amount 98000/- and deducts Rs. 2000/- showing as early payment interest in his debit note.
what will be accounting entries in books of A for deduction of Rs. 2000/-, is it to be treated as discount & rebate or interest paid.
Is A liable for deduction of TDS on this amount (as B has given debit note for interest on early payment),
CAclubindia
