Lease Rent
This query is : Resolved
VINITHA RAJESH
(Querist)
23 November 2010
Hi,
When a person enters into the lease agreement, he is supposed to pay the rent amount in advance. This can be as a lumpsum amount for the lease period together or split into instalments.
How do we treat this amount in the book of accounts.
In this case, the lease is towards land and so AS 19 is not applicable.
When a person enters into the lease agreement, he is supposed to pay the rent amount in advance. This can be as a lumpsum amount for the lease period together or split into instalments.
How do we treat this amount in the book of accounts.
In this case, the lease is towards land and so AS 19 is not applicable.
28 November 2010
The rent amount paid in advance may be shown as deferred revenue expenditure & may be written off over the period of lease.
In case the same is split into installments then the same may be booked as expense in profit & loss account.
In case the same is split into installments then the same may be booked as expense in profit & loss account.
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