Question

6. Make entries for the following transactions:
June 1 Selvan started business with Rs. 3,00,000
3 Purchased goods for 40,000
4 Sold goods for 23,000
6 Paid wages 12,000
8 Purchased machinery for 25,000
10 Sold goods to Arun 4,000
15 Purchased goods from Murali 1,500
20 Received commission 250
25 Paid into bank 1,000
29 Paid rent by cheque 3,500

Answer 1

Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where person responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.