Accounting query. pls help

A/c entries 173 views 3 replies

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

 

Replies (3)

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   

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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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