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If A Company pays amount thru bank for a supplier deducting
tds on behalf of B company.
Accounting entries to be made in company A and B

Answer Posted / manish sarda

Accounting entries in A's Books

B's a/c Dr......
To Supplier's a/c

Supplier's a/c Dr.....
To Bank a/c
To TDS a/c

TDS a/c Dr......
To Bank a/c


Accounting entries in B's Books

Expenses a/c Dr.....
To Supplier's a/c

Supplier's a/c Dr.......
To A's a/c

I hope the above serves the purpose, we can further fine
tune the entries based on companies accounting policies.

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