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MEANING OF ENRTY

(Guest)

IN A PATNERSHIP FIRM A AND B R PATNERS

IN 1 APRIL 2009 ENTRY IS LIKE FOLLOWING

BY C\A A 67838

BY C\A B 67838

TO TDS 135676

I WANT TO KNOW WHAT IS THE MENAINING OF ABOVE ENTRY

WHAT IS THE MEANING OF ABOVE ENTRY

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1 Replies

Ravindra Manek (Chartered Accountant) (74 Points)
Replied 14 April 2010

TDS of the firm for past year (most probably of previous year) is written off the Partners' Capital Account. In other words, TDS of previous year shown under Loans & Advances is transferred to Capital Account. You may have question that what would be the entry when this TDS is refunded. Whatever refund would be received in future will be credited to cap account with interest on refund shown as income.