Dear all,
I would like to know that Journal entry for advance rent will be done on 1st or 31st of month because as I know that outstanding rent / bill is due on 30 /31 where as advance rent will be due on 1st when month start.
Please clarify
Jacky (ACCOUNT EXECUTIVE) (219 Points)
03 January 2014Dear all,
I would like to know that Journal entry for advance rent will be done on 1st or 31st of month because as I know that outstanding rent / bill is due on 30 /31 where as advance rent will be due on 1st when month start.
Please clarify
Samrendra
(Asst. Manager- Internal audit)
(221 Points)
Replied 06 January 2014
Dear Jitender,
Accounting treatment for Advance Rent arise only when you make payment of rent in advance. In other words advance rent is based on payment date but not on due date of rent.
Say Advance rent for Month January is 1st January but you have not paid that rent or paid in February. In this case this will become your outstanding rent which is posted on 31st January
PRABIR BASAK
(Service)
(45 Points)
Replied 06 January 2014
It will be as per the rent agreement...That is on which date the rent have to pay in advance.
Samrendra
(Asst. Manager- Internal audit)
(221 Points)
Replied 06 January 2014
Dear Prabir,
Date mentioned on rent agreement does not force you to make entry for advance rent. Prepaid rent is only entered once rent is paid.
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