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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
Example
Suppose Max gives Consultancy Service to ABC OF 40000. ABC will give him cheque of 40000
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
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
Assuming Bill Issued on 10th April and Amount Received on 15 April
Pass Entries
View AnswerWhen Bill Issued
ABC Dr 40000
To Consultancy Income 40000
For Money Received
Bank Dr. 36000
To ABC 36000
For TDS Deducted
TDS Receivable Dr 4000
To ABC 40000
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 AnswerWhen Bill Issued
ABC Dr 40000
To Consultancy Income 40000
For Money Received
Bank Dr. 36000
To ABC 36000
For TDS Deducted
TDS Receivable Dr 4000
To ABC 4000
CASE-3
Amount Received in Advance
The Company entered into contract 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 AnswerTDS is deducted on
Bill Issued 18 Sep
Or
Amount Received 15th July
Whichever is earlier 15th July
And
Deposited by 7 August (7th of next month of Deduction
For Money Received
Bank Dr. 36000
To ABC 36000
For TDS Deducted
TDS Receivable Dr 4000
To ABC 40000
When Bill Issued
ABC Dr 40000
To Consultancy Income 40000
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 AnswerFor Money Received
Bank Dr. 7200
To ABC 7200
For TDS Deducted
TDS Receivable Dr 800
To ABC 800
When Bill Issued
ABC Dr 40000
To Consultancy Income 40000
Bank Dr. 28800
To ABC 28800
TDS Receivable Dr 3200
To ABC 3200
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 AnswerAmount 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
To ABC 28000
TDS Receivable Dr 4000
To ABC 4000
-ea-
