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Issue of debentures
Accountancy
How to calculate intrest on debenture and tax deducted at source a/c And explain the second entry in the problem given below
Answers (6)
Best Answer
The interest rate will be given in the question itself in this case 12% debentures means annual interest rate is 12%. If the question says interest is payable half yearly, in each half you will pay half the annual interest after deduction proportionate TDS. in this case 30-06-2020 half the annual rate that is 6% is paid on the face value of debentures. So interest is (10,00,000 x 6%) 60,000 and TDS deducted should be 10% of that which is 6000.
Aswin Chandar
The second entry is the entry where a liability against debenture holders(interest payable) and liability for amount payable as TDS(Tax Deducted at Source A/c) are created. They will eventually be paid by crediting cash and debiting the respective A/c.
Bro in which type sources and all TDS will be applicable??
Balachandar S
Bro in which type sources and all TDS will be applicable??
TDS IS APPLICABLE ON VARIOUS INCOME SUCH AS SALARIES, INTREST RECEIVED, COMMISSION RECEIVED, DIVIDENDS etc
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