Accounting Treatment


Learner

Hi..

ABC ltd is real estate company, ABC Ltd have given some area to Haldiram Sweets on rent for their restaurant, In return Haldiram Sweets have paid 2 CR for equipment and setting up their outlet.

apart from it, Haldiram sweets will pay monthly rent of Rs 5 Lakh over thirty years lease period with 10% escalation clause after every three years.

My query is how to recognize rental income and amount received Rs 2 CR towards setting up their outlet.
 
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monthly rent received to be recognized as income from house property. 2 crore to be recognized as other income.
TDS needs to be made by haldiram from monthly rent paid.
 
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