Deposit on rent agreement
This query is : Resolved
07 January 2013
Dear,
My Boss has paid a deposit of amount of Rs. 60,000.00 while entering into a Rental agreement (Commercial Property).
How should I treat this. What Should be this entry.
My Boss has paid a deposit of amount of Rs. 60,000.00 while entering into a Rental agreement (Commercial Property).
How should I treat this. What Should be this entry.
07 January 2013
entry will be
advance/deposit ag. property (xyz ) a/c dr.
to bank
advance/deposit ag. property (xyz ) a/c dr.
to bank
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07 January 2013
Thank you very Much :)
If you can also tell me that this deposit will be under B/Sheet untill its paid right??
if we get the deposit in 3 years (completioin of agreement) so the entry will be
Bank A/c DR.
To Deposit ag Property (XYZ) A/c CR.
Is this correct??
If you can also tell me that this deposit will be under B/Sheet untill its paid right??
if we get the deposit in 3 years (completioin of agreement) so the entry will be
Bank A/c DR.
To Deposit ag Property (XYZ) A/c CR.
Is this correct??
07 January 2013
The above entry is correct. For the next 3 years it will be shown under C/A, Loans & Advances.
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07 January 2013
If you are the tenant, you will record the transactions as payment and as asset account (rent deposit) in balance sheet section.
Now on the part of the landlord or the one who receive the payment it will be recorded as liability account (refundable deposit or payable account) in the balance sheet.
Hope my answer help you
Now on the part of the landlord or the one who receive the payment it will be recorded as liability account (refundable deposit or payable account) in the balance sheet.
Hope my answer help you
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07 January 2013
Dear, I have a doubt in this.
If the landlord has deducted an amount of Rs.15000 towards repairs / nonpayment of Rent for the last month. How will the entry be posted then.
Wil it be
Bank A/c Dr. 45000
Expenses / Rent A/c Dr. 15000
To Deposit ag. Property CR. 60000
Please help.
If the landlord has deducted an amount of Rs.15000 towards repairs / nonpayment of Rent for the last month. How will the entry be posted then.
Wil it be
Bank A/c Dr. 45000
Expenses / Rent A/c Dr. 15000
To Deposit ag. Property CR. 60000
Please help.
07 January 2013
bank a/c 45
rent a/c 15
to deposit ag. property 60
rent a/c 15
to deposit ag. property 60
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