We know that Sales Entry is of Form
Entry for Sales
Party Dr 100000
To Sales 100000
Amount Received
Bank Dr 100000
To Party 100000
In this case,TCS will be Credited in entry which happens first
Example
Case 1
Suppose A makes Sale of 100000 to B on 10 June
Amount received by A from B on 16 July
Pass Entry
View answer
Entry for Sales
10-Jun
Party Dr 101000
To Sales 100000
To TCS Payable 1000
07-Jul
TCS Payable Dr 1000
To Bank 1000
16-Jul
Amount Received
Bank Dr 101000
To Party 101000
-ea-
Case 2
Suppose A makes Sale of 100000 to B on 10 June
Amount received in Advance by A from B on 25 April
Pass Entry
-a-
25-Apr
Amount Received
Bank Dr 101000
To Party 100000
To TCS Receivable 1000
07-May
TCS Payable Dr 1000
To Bank 1000
10-Jun
Party Dr 100000
To Sales 100000
-ea-
Case 3
Suppose A makes Sale of 100000 to B on 10 June
30% Amount received in Advance by A from B on 25 April
Balance Received on 24 August
When is TCS Collected and when Deposited
-a-
25-Apr
Amount Received
Bank Dr 30300
To Party 30000
To TCS Receivable 300
07-May
TCS Payable Dr 300
To Bank 300
10-Jun
Party Dr 100700
To Sales 100000
To TCS Receivable 700
07-Jul
TCS Payable Dr 700
To Bank 700
Bank Dr 70700
To Party 70700