Revenue recognition as-9

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 when is the rent revenue due for recognition in the books of accounts?

Amol S Joglekar

Amol S Joglekar (Expert)
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02 August 2012 Mercantile : as and when it falls due. Cash : as and when it is received.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 thanks for the quick response but i need further clarification, in a situation where i lend oil tanks on rent, and there is a fixed monthly rent for it.M i supposed to book the rental income every month. if so kindly give me the reference of the clarification.

Amol S Joglekar

Amol S Joglekar (Expert)
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02 August 2012 in fact RENT is FIXED. 'floating rent' concept is not in vogue. So if you are following mercantile system, you need to recognise the rent on month on month basis. If you are following CASH system, you will book the rent as and when it is received.

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 thanks Amol. my query is solved.

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