Question ID : 40634

accounting for excess provision made on 31.3.2020

Dear sir/Madam One of the client has made provision for interest receivable for the financial year 19-20 as on 31.03.2020 (for eg.100000) . However during the first week of April 2020 the client has premature FD for salary paid to employee, so the Bank has reduced interest rate for the period 19-20 (for eg.only 90000) but tds has deducted as on 31.03.2020 for rs.100000. In this circumstances what are the entries to be made in the books of accounts as on 31.3.2020. Kindly suggest me, thanks in advance

posted by KANAGARAJ on Apr 24 2020 12:00AM