Menu
Entry for 5 years rent paid
If Sunil, a businessman runs shop in his cousin's office space for zero rent.
After 5 years his cousin demands for rent of 5 years. No agreement was entered. Now, Mr. Sunil pays rent of Rs. 60,000 to his cousin. What will be accounting entries in Sunil's books.
Replies (3)
| Originally posted by : Onkar | ||
 |
If Sunil, a businessman runs shop in his cousin's office space for zero rent. After 5 years his cousin demands for rent of 5 years. No agreement was entered. Now, Mr. Sunil pays rent of Rs. 60,000 to his cousin. What will be accounting entries in Sunil's books. |
 |
Rent A/c Dr 60000
To Cash/Bank A/c 60000
Since there was no error or omission made by Sunil, regarding this transaction
this is not a prior period item
Yes the above entry is correct. The expense will be written off completely this year itself. No adjustment has to be done regarding pre/post matching.
yes above answers is correct
Recent Topics :
- Taxation of Gift - Father to Daughter
- TDS on Property Purchased above 50lakh
- Accounting Treatment in Tally for Restaurant Sales
- Form 146 required
- Rule 86(B) Applicability
- ROC FILINGS FY2025-26
- Mismatch in 26AS
- How Can a Trader Utilise Approximately ₹1.20
- How Can Law Students Present Papers at Conferences
- On which amount 200% penalty under section 270A is
Related Topics :
CAclubindia
