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Is it right?

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)

22 July 2010

Hello 2 all,

I have an doubt on this entry is it right? pl. answer.....

My query is that if my company is paying rent say for Rs. 46K directly from h.o through cheque so entries would be at HO level and Branch level as follows:

AT BRANCH LEVEL:

Office Rent Dr. 46K

Head office A/c Cr. 46k

AT HO LEVEL:

Branch A Dr. 46K

TDS Payable Cr. 4.6K ( @ 10%)

Bank A/c Cr. 41.4k

and on payment TDS Payable Cr. 4.6k

Cash/Bank Cr. 4.6k

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5 Replies

bukbuk (fgsfsagfsg) (105 Points)
Replied 22 July 2010

It is wrong.

The correct series of Entries is as follows. Let us assume that this rent is payable to Mr.X

Recognition of Expense in Branch Books

Office Rent A/c Dr 46,000 /-

T.D.S Payable A/c Cr. 4,600 /-

Mr. X A/c Cr. 41,400 /-

Head office will Pay Rs. 41,400 /- to Mr.X and Debit Branch A/c

Branch A/c Dr. 41,400 /-

Bank A/c Cr. 41,400 /-

On Payment by the Head-office, Branch will pass transfer entry as follows

Mr. X A/c Dr. 41,400 /-

Head-Office A/c Cr. 41,400 /-

On Payment of T.D.S

T.D.S Payable A/c Dr. 4,600 /-

Bank A/c Cr. 4,600 /-

Hope this helps you

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Rakesh Kumar (B.Com ( H ) Pursuing CA Final ) (327 Points)
Replied 22 July 2010

yeah..its correct

Rakesh Kumar (B.Com ( H ) Pursuing CA Final ) (327 Points)
Replied 22 July 2010

Originally posted by : bukbuk
	It is wrong. The correct series of Entries is as follows. Let us assume that this rent is payable to Mr.X Recognition of Expense in Branch Books Office Rent A/c Dr 46,000 /- T.D.S Payable A/c Cr. 4,600 /- Mr. X A/c Cr. 41,400 /- Head office will Pay Rs. 41,400 /- to Mr.X and Debit Branch A/c Branch A/c Dr. 41,400 /- Bank A/c Cr. 41,400 /- On Payment by the Head-office, Branch will pass transfer entry as follows Mr. X A/c Dr. 41,400 /- Head-Office A/c Cr. 41,400 /- On Payment of T.D.S T.D.S Payable A/c Dr. 4,600 /- Bank A/c Cr. 4,600 /- Hope this helps you