Entry booking and its effect on rent paid
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 January 2012
eg; i am paying rent of 100000 for the month of jan,12 on 2.1.2012 as an advance so i am booking entry as
Rent a/c dr
to rent payable
( Entry Booked)
Rent payable dr
to BAnk
to tds
( Payament Made0 both the entries were made on same date.
so my doubt was i have to book that expenses as prepaid or not if yes pls suggest me a entry and its effect on balance sheet
Rent a/c dr
to rent payable
( Entry Booked)
Rent payable dr
to BAnk
to tds
( Payament Made0 both the entries were made on same date.
so my doubt was i have to book that expenses as prepaid or not if yes pls suggest me a entry and its effect on balance sheet
04 January 2012
An expense is said to be a Prepaid expense when the amount paid covers a period BEYOND the current accounting period.
For instance if you pay rent for 6 months from Jan to June, then rent for 3 months (April, May, June) shall be prepaid.
If an expense is paid for more than one month falling in the current accounting period, it will not be treated as prepaid expense.
For instance if you pay rent for 6 months from Jan to June, then rent for 3 months (April, May, June) shall be prepaid.
If an expense is paid for more than one month falling in the current accounting period, it will not be treated as prepaid expense.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Non-Compliance documents have not been submitted by the contractors debited
- Invertaded duty struture
- FCRA 6 E- Intimation
- GST Rate for Catering Services
- EXPORT COMMERCIAL INVOICE HSN CODE
- Same demand raised for original as well as rectification request return
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
