Tds entry adjustment in accounting

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SUMIT GADHAVE (Querist)
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29 December 2018 i have TDS Credit of Rs. 5420/- for FY 2017-18 which i have shown on Balance sheet. Now in FY 18-19 i have received Refund of 3300 /- adjusting the credit . Please help me for accounting entries in the books of proprietor.

Gokul Sharma

Gokul Sharma (Expert)
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29 December 2018 BANK ACCOUNT DR 3300
TO TDS ASSET AY 18-19 3300

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SUMIT GADHAVE

SUMIT GADHAVE (Querist)
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29 December 2018 But sir how to close Rs. 5420 /- tds credit balance by accounting entry . My tax payable was 2120/- and i have excess tds credit which refunded to my bank account so please, help to show 2120/- liability through accounting entry and closing rs 5420/- in Books

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RAJA P M

RAJA P M (Expert)
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29 December 2018 Are you book Income Tax Payable Rs. 2120 in Py...?

If Yes then transfer the balance TDS amount (5420-3300 = 2120) Rs 2120 to Income Tax Payable account. Then it's tallied.

or
transfer to Capital account...