04 August 2011
We have raised a bill on our party for Rs.100000. The party has made a payment of Rs.99000 after deducting 2% tax on that ie. Rs.1980 TDS. But they have issued us a TDS certificate of Rs.2000. How do we reconcile the tds account.
05 August 2011
You are saying the party made payment of Rs 99000/- after deducting TDS Rs 1980/- which is wrong. It will be Rs 98020/-. Now they issued TDS Cert of Rs 2000/-. Pass entry like this--
Party A/c Dr ...100000 To Bill A/c (Income Receivable) Rs100000
TDS Receivable A/c Dr....Rs 2000 To Party A/c Rs 2000
Bank A/c Dr...Rs 98020 To Party A/c Rs 98020
Therefor you received Rs 20 more.
Party A/c Dr.....Rs 20 To Cash A/c Rs 20
(being excess payment received now adjusted by cash payment.)
Querist :
Anonymous
Querist :
Anonymous
(Querist)
10 August 2011
No there is a balance lying in the party account for Rs.1000. Then what entry will be passed.