How can I post transaction in below case.
I am posting vendor transaction with withholding tax deducted in Advance payment & invoice. In this case vendor is subjected to two type of withholding tax (withholding tax for invoice posting & Withholding tax for payment posting)
1) For advance payment 10,000/- with 10% Tds
Vendor a/c Dr 10000
To Bank a/c 9000
To Tds a/c 1000
2) For Invoice 20,000/- with 10% Tds
Expenses a/c Dr 20000
To Vendor a/c 18000
To Tds a/c 2000
In above transaction for 2,000 we have deducted 3,000 from vendor. How to clear this transaction?
Kindly assist here, thanks in advance.