X an HUF takes a property on rent from Y (an Charitable Turst)
X pays Rs.200000 as Security Deposit to Y, Monthly Rent RS. 10000
X pays Rent for 2 Months in cash.
after one year X decided to vacate the property.
X has a rent out standing of RS. 100000 (Paybale to Y)
X adjusts the arrears of rent against Security deposit RS. 100000
and decides to donate the remaing Rs. 100000 to Y for CHsritable Purpose.
Can anyone Tell me the entries
1. On payment of security deposit
Rent Deposit A/c Dr 2,00,000
To Bank a/c 2,00,000
2. On payment of Rent
Rent A/c Dr 20,000
To Bank A/c 20,000
(Write the above entry month wise)
3. AT the end of Year 1
Rent a/c Dr. 1,00,000
To Rent deposit 1,00,000
4. Balance deposit amount is considered for charity
Donations A/c Dr 1,00,000
To Rent Deposit 1,00,000
| 1 | Rent Deposit A/c | Dr. | 200,000 | |
| To Y Trust A/c | Cr. | 200,000 | ||
| (Being Rent Deposit is accounted) | ||||
| 2 | Y Trust A/c | Dr. | 200,000 | |
| To Bank A/c | Cr. | 200,000 | ||
| (Being Rent Deposit Paid to Y) | ||||
| 3 | Rent A/c | Dr. | 10,000 | |
| To Y Trust A/c | Cr. | 10,000 | ||
| (Being Rent accounted for 1st Month) | ||||
| 4 | Y Trust A/c | Dr. | 10,000 | |
| Bank A/c | Cr. | 10,000 | ||
| (Being Rent Paid to Y Trust for 1st Month) | ||||
| Repeat the Entries 3 & 4 for 2nd Month also | ||||
| 5 | Rent A/c | Dr. | 10,000 | |
| Y Trust A/c | Cr. | 10,000 | ||
| (Being Rent accounted for 3rd Month) | ||||
| Repeat the Entry 5 for the balance 9 months. | ||||
| Outstanding to Y Trust A/c will become 100000 | ||||
| by end of the year. Now only the Rent | ||||
| Outstanding Payable to Y will become 100000 | ||||
| 6 | Y Trust A/c | Dr. | 100,000 | |
| Rent Deposit A/c | Cr. | 100,000 | ||
| (Being the Rent Payble to Y Trust is adjusted | ||||
| against the Security Deposit) | ||||
| 7 | Donation A/c | Dr. | 100,000 | |
| Y Trust A/c | Cr. | 100,000 | ||
| (Being Donation payable to Y Trust is accounted) | ||||
| 8 | Y Trust A/c | Dr. | 100,000 | |
| Rent Deposit A/c | Cr. | 100,000 | ||
| (Being Donation Payable is adjusted against | ||||
| Rent Deposit) | ||||
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