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What is TDS Receivable?

It means passing entries in case our TDS Deducted

 

We know that for Incomes,2 entries are passed

When Bill Issued

Party Dr

       To Income

When Amount Received

Bank  DR.

        To Party

 

 

In this case,if TDS is to be Debited in Entry When Amount Received

Without TDS

With TDS

First Bill then Amount Received

When Bill Issued

Party   Dr     50000

      To Income    50000

When Amount Received

Bank    DR.    50000

        To Party      50000

 

 

First Bill then Amount Received

When Bill Issued

Party   Dr     50000

      To Income    50000

When Amount Received

Bank    Dr.    450000

TDS     Dr      5000

        To Party      50000

 

First Amount Received Then Bill

When Amount Received

Bank    DR.    50000

        To Party      50000

 

When Bill Issued

Party   Dr     50000

      To Income    50000

 

 

First Amount Received Then Bill

When Amount Received

Bank    Dr.    450000

TDS     Dr      5000

        To Party      50000

 

When Bill Issued

Party   Dr     50000

      To Income    50000

 

40% Amount Received Then Bill Issued, then Balance Received

Bank    DR.    20000

        To Party      20000

 

 

  When Bill Issued

Party   Dr     50000

      To Income    50000

 

Bank    DR.    30000

        To Party      30000

 

 

40% Amount Received Then Bill Issued, then Balance Received

Bank    Dr.    18000

TDS     Dr      2000

        To Party      20000

 

When Bill Issued

Party   Dr     50000

      To Income    50000

 

  Bank    Dr.    27000

TDS     Dr      3000

        To Party      30000

 

 

ASSIGNMENT

CASE-1

Entries During The Year - TDS TCS Accounting

Assuming Bill Issued on 10th April and Amount Received on 15 April

Pass Entries

-a-

When Bill Issued

ABC  Dr     40000

      To Consultancy Income    40000

When Amount Received

Bank     Dr.               36000

TDS Receivable  Dr   4000

                    To ABC     40000

 

-ea-

 

 CASE-2

Bill Issued  on 10th April from Max for Consultancy Service

Amount Received on 15thSept.
When is TDS Deducted & when Deposited ?

Pass Entries

-a-

 

 

When Bill Issued

ABC  Dr     40000

      To Consultancy Income    40000

When Amount Received

Bank     Dr.               360000

TDS Receivable  Dr   4000

                    To ABC     40000

 

 -ea-

 

CASE-3

Amount Received in Advance

The Company entered into connect with
Max Ltd on 15 July or 40,000

Whole amount paid in advance on that date

Bill Issued on 18th September from Max for Consultancy Service

Pass Entries

-a-

TDS is deducted on

Bill Issued                 15th July

 Or

Amount Received                       18 September

Whichever is earlier       15th July

And

Deposited by                  7 August  (7th of next month of Deduction

 

 

 

When Amount Received

Bank     Dr.               360000

TDS Receivable  Dr   4000

                    To ABC     40000

 

When Bill Issued

ABC  Dr     40000

      To Consultancy Income    40000

 

  -ea-

 

CASE-4

First Advance paid then Bill Received
Then Balance amount paid
The Company entered into Contact with Max for Consultancy Services on 15 July

As per contact 20% paid in advance on 15 July
Bill Issued  later on 18 September Balance paid to Max on 14 Nov.
When is TDS deducted and deposit 

Pass Entries

-a-

 

When Amount Received

Bank     Dr.               7200

TDS Receivable  Dr   800

                    To ABC    8000

 

When Bill Issued

ABC  Dr     40000

      To Consultancy Income    40000

 

Bank     Dr.               28800

TDS Receivable  Dr   3200

                    To ABC     32000

-ea-

 

 

CASE-5

Flat 8000 paid in Advance on 15 July to max
Bill Issued  later for Consultancy Services of 40,000 on 18 Sept
Balance amount received on 14 November

Pass Entries 

-a-

Amount paid will be deemed to be net of TDS

Pass Entries

 -a-

When Amount Received

Bank     Dr.               8000

                    To ABC    8000

 

When Bill Issued

ABC  Dr     40000

      To Consultancy Income    40000

 

Bank     Dr.               28000

TDS Receivable  Dr   4000

                    To ABC     32000

-ea- 

  1. Accounts and Finance
  2. Accounts with Taxes
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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