can you advise the journal entries for part payment for the contractor bill? Suppose Bill's net value is Rs. 100, GST is 12% and TDS is 2 %. But right now I am able to pay Rs. 40 (Net value) + Taxes. Can you suggest the journal entry for making this part payment (Rs. 40) to contractor along with taxes. And what will be journal entry for the remaining amount (Net Rs. 60/-)
5 Replies
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 23 September 2020
Initially
Contractor expenses 100
To Payables 100
Later on during payment time
Bills payable 40
GST 12
TDS 2
To Bank 54
To represent the 60₹, there is no entry. The remaining balance will be shown in the payables general ledger.
Remember the journal entry’s first law: record transactions when an event occurs in the day book. Then, transfer them to ledgers. From ledger balances prepare a trial balance and final accounts,
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 23 September 2020
Initially
Contractor expenses 100
To Payables 100
Later on during payment time
Bills payable 40
GST 12
TDS 2
To Bank 54
To represent the 60₹, there is no entry. The remaining balance will be shown in the payables general ledger. Remember the journal entry’s first law: record transactions when an event occurs in the day book. Then, transfer them to ledgers. From ledger balances prepare a trial balance and final accounts.
Bad connection, and could not input properly. Hope you got the right answer.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 September 2020
Good morning! Initial recognition of payables can include gst amounts as per company policy or else you can directly pay them if your sure if it is paid back before the end of accounting period. I forgot to mention that yesterday.
Rohit Patel
(20 Points)
Replied 30 September 2020
Initial entry will be:--
Expense a/c. Dr. 100
GST a/c Dr. 12. (input tax receivable)
To Contractor's a/c. 110 (98 + 12)
To TDS payable. 2. (100 * 2%)
And on payment of ₹40
Contractor's A/c. Dr. 44.8 ( 40+ 12% gst)
To C/B. 44.8
Expense a/c. Dr. 100
GST a/c Dr. 12. (input tax receivable)
To Contractor's a/c. 110 (98 + 12)
To TDS payable. 2. (100 * 2%)
And on payment of ₹40
Contractor's A/c. Dr. 44.8 ( 40+ 12% gst)
To C/B. 44.8
RAJESH BOHARA
(FINANCE ANALYST)
(15 Points)
Replied 28 March 2023
GOOD MORNING ALL , I HAVE A QUERY , HOW TO BOOK SUB CONTRACTOR EXPENSE IN TALLY (BECAUSE CONTRACT WITH SUB CONTRACTOR IS PHASE WISE WORK FINISH PAYMENT WILL RELEASE , SO HOW TO BOOK THAT ENTRY , UNDER WHICH ACCOUNTING HEAD THE EXPENSE , CAN YOU REPLY ME.
PAYMENT ENTRY I BOOKED IN TALLY : SUB CONTRACTOR A/C DR.
TO BANK / CASH A/C
BUT HOW TO BOOKED EXPENSE IN TALLY
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