Wht account entries

Question

hi,
for withholding tax posting when invoice
cr vendor          980
dr tax expense 1000
cr wht payable   20
1 but for withholding tax posting when payment
cr bank clearing  980
dr vendor          1000
cr wht payable     20
2 subsequently when come to bank recon
dr bank clearing     980
cr main bank       1000
3 make payment of wht
dr wht payable    20
cr  bank clearing 20
my question is, it is not balance off as bank recon time and payment of wht time could be different. so i would like to know if double entry in 1 2 and 3 is correct.
thanks

Answer 1

Please note that WHT should be accounted either at the time of invoice or at the time of payment but not both.
In your case if we assume that tds happens at the time of payment, then following entreis are possible
At the time of invoice
CR Vendor - 1000
Dr Exp       - 1000
(At this time, base amount, TDS amount are determined by the system, but no posting happens to WHT)
Payment
Dr Vendor  - 1000
Cr WHT     -    20
Cr Bank Clrng    -  980 
Bank statement
Dr Bank clearing - 980
Cr Bank -  980
Hope this helps