Rent Recived from a trust
Rs. 10 lac
tds deducted Rs. 1 lac
how to pass journal entry of above transaction in the books of trust
Who received rent?. is it landlord / owner or somebody else ?. please inform .
13 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 05 July 2023
In the books of trust following entries will be for rent paid to landlord.
Rent A/c Dr. 11,00,000/-
To Landlord A/c Cr 10,00,000/-
To TDS on rent A/c Cr 1,00,000/-
( rent payable after deduction of TDS )
Landlord A/c Dr 10,00,000/-
To Bank A/c Cr. 10,00,000/-
( rent paid after deduction of TDS to landlord)
TDS on rent A/c Dr
To Bank A/c Cr
( TDS on rent deducted deposited in Govt account)
TDS on rent A/c under Duties and Taxes, Liability side Balance sheet.
Rent A/c Dr. 11,00,000/-
To Landlord A/c Cr 10,00,000/-
To TDS on rent A/c Cr 1,00,000/-
( rent payable after deduction of TDS )
Landlord A/c Dr 10,00,000/-
To Bank A/c Cr. 10,00,000/-
( rent paid after deduction of TDS to landlord)
TDS on rent A/c Dr
To Bank A/c Cr
( TDS on rent deducted deposited in Govt account)
TDS on rent A/c under Duties and Taxes, Liability side Balance sheet.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 05 July 2023
Okay Mr Prasad Nilugal,
Please check query once again...
Please check query once again...
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 05 July 2023
He wants entry in the books of Trust, who paid the rent to landlord after deduction of TDS. This is my understanding.
Yasir
(article assistant )
(466 Points)
Replied 05 July 2023
I once again mention the query
A trust is the owner of a multipurpose hall
trust give this hall to any other trust on rent
amount received from rent from another trust is rs 10 lac
tds deducted Rs 1 lac
9 lacs received in bank account of the trust who is the owner of multipurpose hall
A trust is the owner of a multipurpose hall
trust give this hall to any other trust on rent
amount received from rent from another trust is rs 10 lac
tds deducted Rs 1 lac
9 lacs received in bank account of the trust who is the owner of multipurpose hall
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 05 July 2023
Okay, But You want Details for Landlord or Tenant...????
As per Your query "Trust" (the word) used in Top & Bottom...
So,
Entries as above is Tenants books of Accounts...
So and So ask your query clearly....
As per Your query "Trust" (the word) used in Top & Bottom...
So,
Entries as above is Tenants books of Accounts...
So and So ask your query clearly....
Yasir
(article assistant )
(466 Points)
Replied 05 July 2023
I want entries detail in the books of owner
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 05 July 2023
SO WHO IS THE TRUST AND THE OWNER? TDS IS APPLICABLE TO ALL. sometimes ppl don't give adequate info like if the rent is inclusive of tds or exclusive. The above entries by @ Prasad Nilugal is exclusive.
If it is inclusive
Dr. Rent 10
Cr. Bank 9
Cr. TDS payable 1
And upon payment of tds
Dr. TDS payable 1
Cr. Bank 1
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 05 July 2023
Again its for Tenant's books, as Expense.
Not for Landlord's books...
Not for Landlord's books...
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 05 July 2023
XYZ Ltd charges monthly office rent of 100,000 from its tenant. It also charges GST e.g. 18% on 100,000. On the 10th of every month, the tenant deducts TDS say 10% on the rent amount i.e. 100,000 at the time of payment of rent to XYZ Ltd.
Show journal entries in the books of XYZ Ltd for rent received considering TDS & GST implications.
10th of every month – Journal entry at the time of receipt with TDS & GST
Cash/Bank A/c 1,08,000
TDS Asset A/c 10,000
To Rent A/c 100,000
To GST Liability A/c 18,000
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 05 July 2023
What will happen if TDS is 5%?
Bank Dr. 113000 (118k minus 5k)
Tds asset 5000
To rental income 100000
To GST payable 18000
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 06 July 2023
So if you want entry in the books of trust A ,who received rent from another trust B , after deduction of TDS is as follows.
In the books of Trust A
Turst B A/c Dr
To Rent receivable A/c Cr
( rent receivable)
Bank A/c Dr 900000/-
TDS on rent Dr 100000/-
To Trust B A/c Cr. 1000000/-
( receipt of rent from Turst B after deduction of TDS )
So this time TDS on rent A/c will be under TDS receivable A/c , Asset side Balance sheet.
In the books of Trust A
Turst B A/c Dr
To Rent receivable A/c Cr
( rent receivable)
Bank A/c Dr 900000/-
TDS on rent Dr 100000/-
To Trust B A/c Cr. 1000000/-
( receipt of rent from Turst B after deduction of TDS )
So this time TDS on rent A/c will be under TDS receivable A/c , Asset side Balance sheet.
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