A company is credited my client's account for display rent. but in my clients books it is treated as incentive income. is it right?
My client displays the product of the company on his sale counter so the company credit our a/c for the rent.
What should be the right treatment of this display rent in my clients books?
Hello,
I am not understading the question, Is your clients income of rent is a income from business??
As far as i understood, Rent is a nominal account, so
In the books of ur client
1. Dr.Company A/c (Dr. Receiver)
Cr. Rent A/c (Cr. Income & Gains)
2. Dr. Bank A/c (Dr. What comes in)
Cr. Company A/c (Cr. the Giver)
Hema Yashwanth & Associates
Chennai
B.Com
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Getmyca Consultant Pvt Ltd
New Delhi
CA Inter
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Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
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CCI
Pro
CAclubindia
