We know that for Expenses, 2 entries are passed

When Bill Received

Expense Dr

    To Party

When payment made

Party Dr

       To Bank

In this case, if TDS is to be credited in Entry which happens first

 

COMPARISON

Without TDS

With TDS

First Bill then Payment

When Bill Received

Expense Dr       50000

    To Party             50000

When payment made

Party Dr              50000

       To Bank             50000

 

First Bill then Payment

 

Expense Dr          50000

     To Party               45000

    To TDS                  5000

 Party Dr                  45000

      To  Bank                45000

 

Payment in advance, then Bill Received

Party Dr                50000

   To Bank                 50000

 

 

Expense Dr            50000

     To Party                 50000

 

Payment in advance, then Bill Received

Party Dr             50000

   To Bank              45000

   To TDS                5000

 

Expense Dr          50000

     To Party               50000

 

40% Payment in advance then Bill Received, then Balance Payment

Party Dr          20000

   To Bank            20000

 

 

Expense Dr       50000

     To Party            50000

 

 

 Party Dr              30000

      To  Bank                30000

 

 

40% Payment in advance then Bill Received, then Balance Payment

Party Dr              20000

   To Bank                18000

   To TDS                  2000

 

Expense Dr           50000

     To Party                 47000

     To TDS                   3000

 

Party Dr               27000

      To  Bank                27000

(47000 Cr – 20000 Dr.)

 

 

 ASSIGNMENT

CASE-1

TDS payable entries - TDS Payable Entries

Assuming Bill Received on 10th April and Payment Made on 15 April

Pass Entries

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  1. Accounts and Finance
  2. Accounts with Taxes
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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 .
  • uttam kumar Dey's image
    How to file 3B form of GST



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  • hem1717's image

    Hi There, "Case 6" as question not mentioned after Case 5, so there is confusion to comprehend the answer. Pls do mention "Case 6" as well.

    View answer
  • SUMIT BADYAL's image

    Payment in advance, then Bill Received

    Party Dr             50000

       To Bank              45000

       To TDS                5000

     

    Expense Dr          50000

         To Party               50000

    Can u elaborate this entry


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