07 May 2012
Friends, How do i record the rent received from my customers in a rent a car business ?. Do i need to show it under sales or under service charge collection ?. Whether i have to show my cars as fixed asset or current asset ?. what will be the entry when the car has been returned by the customer ?
07 May 2012
Car is a fixed asset for your business. You can group the Rent Received under Gross Receipts.
There will be no entry when car is returned as it is not a monetory transaction. Entry will be there only for the sale / booking transaction and the payment thereof.
CAclubindia
