Advance rental adjustment

A/c entries 2266 views 4 replies

I am working with MNC, We have paid Advance lease rent of Rs.14 Lakhs , Monthly lease rent including TDS Rs.3.60 Lakhs , I want to pass the entry for lease rent as well as TDS by giving credit to the lessor. please help on uregent basis

Replies (4)

Advance Rent  Dr   1400000

To-TDS                                                 140000

To-Bank                                                1260000

TDS on rent is requried to be made at the time of credit or payment whihcever is earlier.  As Rent is paid in advance in advance in whihc case payment is earlier so TDS @ 10% is to be made.

Now Monthly Lease rental inclusive of TDS should be adjusted against advance Rent & TDS as follows:

Rent Dr      360000

To- Advance Rent        360000

 

TDA payable account will be closed by debiting it with Bank.

Hi William,

first of all the Rs.14 lakhs amount paid by you as advance or deposit towards rent.  If the same is adustable against monthly rent, then u will pass the following entry

Vendor Account / Rent advance account Dr

To TDS payable on Rent A/c.

To Bank Account.

if the advance amount paid towards deposit

then

Rent Deposit / Vendor A/c.

To Bank Account

the total deposit amount will be refunded by the lessor at the time of vacant of the premises and also first you decide whether the amount paid to the lessor as lease rent or rent.

if the amount towards lease rent then you follow the same as per Accounting standard 19(AS19).

 

agree with giridhar

 

 

Griidhar has correctly explained.


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