In case of partial cancellation of transaction (s), the expenses and excess TDS deducted needs to be reversed. In Tally.ERP 9, such reversal of expenses and TDS is possible only when the cancellation of transaction is made before the payment of TDS to the Government.
In Tally.ERP 9, reversal of expenses can be accounted using Debit Note and reversal of TDS deducted can be accounted using Credit Note.
Example: On 17-10-2009 ABC Company received bill from Pheonix Agencies for Rs. 75,000 towards Advertising expenses. On 21-10-2009 ABC Company cancelled the advertisement services to the extent of Rs.25,000 and Expenses and TDS deducted are reversed.
To account these Transaction follow the given steps
1. Book the Expenses in Journal Voucher
2. Reverse the Expenses (Debit Note)
3. Reverse the excess TDS Deducted (Credit Note)
Step 1: Book the Expenses in Journal Voucher
Before recording the transaction ensure all the masters are created.
Go to Gateway of Tally > Accounting Vouchers > F7: Journal
Step 2: Reverse the Expenses (Debit Note)
Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9: Debit Note
Note: Observe TDS Amount is not displayed as we are not reversing TDS in Debit Note
Step 3: Reverse the excess TDS Deducted (Credit Note)
Go to Gateway of Tally > Accounting Vouchers > Ctrl+F8: Credit Note
© 2021 : www.tallyerp9book.com