Accounting query. pls help

Govind Rathore (CA Final) (543 Points)

21 November 2017

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

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3 Replies

satish (teaching) (2046 Points)
Replied 22 December 2017

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

Amiya Ranjan Patra (Chartered Accountant) (51 Points)
Replied 23 January 2018

hello...where r u ??

veeramani (Senior Manager Commercial) (62 Points)
Replied 08 February 2018

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)