What should be the journal entry for the below mentioned transaction:
I share an apartment with 3 friends of mine whose monthly rental is 24000. My friends deposited 6000 each in my account and I paid Rs. 24000 to the land lord. What will be the journal?
For Receiving cash from friends.
Dr. Cash A/c Rs. 24000/-
Cr. Fiend 1 A/c Rs.6000/-
Cr. Friend 2 A/c Rs.6000/-
Cr. Friend 3 A/c Rs.6000/-
Cr. Friend 4 A/c Rs.6000/-
For paying rent
Dr. Rent A/c Rs. 24000/-
Cr. Cash A/c Rs.24000/-
Amount Due for from friends for payment to landlord entry
friend 1 a/c dr 6000
friend 2 a/c dr 6000
friend 3 a/c dr 6000
to rent payable by friends 18000
Cash received from friends
cash a/c dr 18000
To friend 1 6000
to friend 2 6000
to friend 3 6000
Rent paid
landlords a/c dr 240000
to cash a/c 24000
soniya
if i go by ur entry, then rent payable by friends and landlord account, both these accounts will still show up in my balance sheet !!
Dear Raghvendra sir,
Entry would be:-
Rent dr. 6000 (own) (on due date)
To Rent payable 6000
Cash dr. 18000 (3 friends) (on receiving from friends)
To Rent payable 18000
Rent payable dr. 6000 (own) (on payment date)
To cash 6000
Rent payable 18000 (of 3 friends) (on payment date)
To cash 18000
Best Regards,
CA Lovely Arora
Lovely Arora and Associates
ca.lovelyarora @ gmail.com
Rent A/c ............... Dr. 6000/-
Friend 1 .............. Dr. 6000/-
Friend 2 ............... Dr. 6000/-
Friend 3 ............... Dr. 6000/-
To Rent Payable 24000/-
-----------------------------------------------------------------------
Bank A/c ------------Dr. 18000/-
To Friend 1 6000/-
To Friend 2 6000/-
To Friend 3 6000/-
----------------------------------------------------------------------
Rent Payable A/c ------------ Dr. 24000/-
to Bank A/c 24000/-
Cash A/c ..................Dr. 18000
CAclubindia
