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

 

Example

Suppose Max gives Consultancy Service to ABC OF 40000.  ABC will give him cheque of 40000

tds receivable entry 1.jpg

But in case,if TDS is applicable,  Max will give bill of 40000 TO ABC

Max will receive 36000,  Also he will receive TDS Certificate of 4000

tds receivable entry 2.jpg

 

He will pass entry as follows

Without TDS

With TDS

First Bill then Amount Received

When Bill Issued

Party   Dr     40000

      To Income  40000

 

When Amount Received

Bank    DR.  40000

        To Party      40000

 

 

 

 

First Bill then Amount Received

When Bill Issued

Party   Dr     40000

      To Income   40000

 

When Amount Received

Bank    Dr.    36000

         To Party     36000

 

TDS     Dr      4000

        To Party     4000

 

First Amount Received Then Bill

When Amount Received

Bank    DR.   40000

        To Party     40000

 

 

 

 

 

When Bill Issued

Party   Dr    40000

      To Income   40000

 

First Amount Received Then Bill

When Amount Received

Bank    Dr.  36000

         To Party    36000

 

TDS     Dr      4000

        To Party     4000

 

 

When Bill Issued

Party   Dr    40000

      To Income   40000

 

40% Amount Received Then Bill Issued, then Balance Received

Bank    DR.    16000

        To Party      16000

 

 

 

When Bill Issued

Party   Dr     40000

      To Income  40000

 

When Balance Payment Made 

Bank    DR.    24000

        To Party      24000

 

 

40% Amount Received Then Bill Issued, then Balance Received

Bank    Dr.    14400

         To Party    14400

TDS     Dr      1600

        To Party      1600

 

When Bill Issued

Party   Dr    40000

      To Income  40000

 

When Balance Payment Made 

Bank    Dr.    21600

          To Party      21600

TDS     Dr      2400

        To Party      2400

 

ASSIGNMENT

CASE-1

What is TDS Receivable Entries During The Year - TDS TCS Accounting

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

Pass Entries

View Answer

 

CASE-2

Bill Issued  on 10th April from Max for Consultancy Service

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

Pass Entries

View Answer

 

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

View Answer

 

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

View Answer

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 

View Answer
  1. Accounts and Finance
  2. Accounts with Taxes
Ask Download

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 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .