Journal entry
This query is : Resolved
23 February 2013
"B" taken office on rent from "c"& after "B" sublets to its subsidary co. "A" on same amt of rent , so "A" is directly paid rent to "c" so tell me the Jouranl Entry in the books of "A" & B"with statutory requirments.
23 February 2013
There is no need for any entry in the books of "B". although as "B" actually taken office on Rent hence there is a contingent liability on "B" if "A" does not pay rent to "C".
Hence Contingent liability will appears in "B". book.
Journal Entries in the books of "A"
Rent Exp A/c Dr.
To Party A/c "C"
Party A/c "C" Dr.
To Bank A/c
To TDS (if applicable)
Hence Contingent liability will appears in "B". book.
Journal Entries in the books of "A"
Rent Exp A/c Dr.
To Party A/c "C"
Party A/c "C" Dr.
To Bank A/c
To TDS (if applicable)
23 February 2013
ok sir thnks...
23 February 2013
but sir in which head "A" booked C" in his accounts bcz the "A" taken on rent from "B" so agreements is between "B & A". If we paid rent to c how the C account get seteled in books of "A"?
23 February 2013
Its a triplicate agreement.
and actually rent is paid by "A" to "C".
there is no problem if a directly booked and paid to "C".
There my be another way like
In books of B
Rent Exp Dr
To "C"
"A" Dr
To Rent Exp
"C" Dr
To "A"
In books of A
Rent Exp Dr
To "B"
"B" Dr
To "C"
"C" Dr
To Bank
ultimate effect in books of "B" NIL
in books of "A" Rent booked and Liability booked for "C"
and actually rent is paid by "A" to "C".
there is no problem if a directly booked and paid to "C".
There my be another way like
In books of B
Rent Exp Dr
To "C"
"A" Dr
To Rent Exp
"C" Dr
To "A"
In books of A
Rent Exp Dr
To "B"
"B" Dr
To "C"
"C" Dr
To Bank
ultimate effect in books of "B" NIL
in books of "A" Rent booked and Liability booked for "C"
23 February 2013
Thanks sir now i get cleared..
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