Journal entries for hotel..

This discussion clarifies the accounting treatment for income generated from renting out a hotel's car. Unlike businesses that sell goods, hotels typically record this income under 'Other Income' in their Profit and Loss (P&L) account. If car rentals become a significant part of the business, it may need to be accounted for as a separate business activity under 'Profits and Gains from Business or Profession' (PGBP).