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Journal entry for rent paid/due?

Page no : 2

Abdul Razak (Accountant) (95 Points)
Replied 19 January 2021

When you pay rent same month

Rent A/C Dr (Indirect Expenses)                                         

To Cash/Bank A/C 

(Being Rent paid for the month of ..............)

When you pay rent next month)                                                               

Rent A/C Dr (Indirect Expenses)                      

To Rent Payable / Mr. A  A/C (Under Current Liability)

(Being Rent Payable for the month of ..................)

A the time of paying Rent

Rent Payable A/c Dr

To Cash/Bank A/C

(Being Rent paid for the of month of .............)

                              
                                                           



Ritik Chopra (student) (8118 Points)
Replied 13 February 2021

The Institute of Chartered Accountants of India (ICAI) has issued guidance note on accounting for index futures and stock futures contracts from the view point of the parties who enter into such futures contracts as buyers or sellers

The full document can be viewed at https://www.tnkpsc.com/Image/Accountingderivatives.pdf


RAViNDRA SiNGH (2 Points)
Replied 18 July 2022

Pure journal Entry for rent-

Store rent A/c- Dr.       ...

Input CGST A/c Dr.     ...

Input SGST A/c Dr.     ...

To TDS 194I 10%        ...

To A/c Payable           ...

(Landloard A/c)


Neha (ENTREPRENEUR) (200 Points)
Replied 03 June 2023

Rent A/c ...........Dr.

CGST A/c ...........Dr.

SGST A/c ...........Dr.

To Cash A/c


Mitali (Finance Professional) (9460 Points)
Replied 25 November 2023

When Rent is paid

Rent a/c

To Bank

When Rent paid in advance

Prepaid Rent a/c

To Bank

When rent expense is incurred, it can be transfered from prepaid rent to rent expense, the entry will be:

Rent a/c

To Prepaid Rent a/c

When Rent received

Bank a/c

To Rent a/c

When Rent received in advance (if the amount received more than the actual rent amount)

Bank a/c

To rent received A/c (the actual amount)

To advance rent/Unearned rent a/c  (the advance received)




Yasaswi Gomes new (Finance ) (4331 Points)
Replied 05 December 2023

Section 194I- TDS on Rent- for companies
Exemption- refundable security deposit or advance on rent (TDS applicble on non-refundable security/advances)
Rent of plant, equipment and machinery- 2%
Rent of land, building, furniture or fitting -10%
Rent threshold limit- 240000/-
entry
Dr. Rent expense
Cr. TDS payable/owners account

Cr. GST payable
Cr. Rent payable
 


Yasaswi Gomes new (Finance ) (4331 Points)
Replied 08 December 2023

Tds is applicable when you pay rent even if your pay rent above 2.4 lakhs


bizon bizo (32 Points)
Replied 13 December 2023

 

For the rent payment to your director, the journal entry should be a debit to the Rent Expense account and a credit to the Director's Account, reflecting the payment made for office use. For the March 2014 rent paid in April 2014, you should record it in March's accounts as a debit to Rent Expense and a credit to Rent Payable, then adjust in April with a debit to Rent Payable and a credit to Cash or Bank, aligning with the actual payment date.


bizon bizo (32 Points)
Replied 13 December 2023

 

For the rent payment to your director, the journal entry should be a debit to the Rent Expense account and a credit to the Director's Account, reflecting the payment made for office use. For the March 2014 rent paid in April 2014, you should record it in March's accounts as a debit to Rent Expense and a credit to Rent Payable, then adjust in April with a debit to Rent Payable and a credit to Cash or Bank, aligning with the actual payment date.


bizon bizo (32 Points)
Replied 13 December 2023

Originally posted by : Ankit Chauhan
sir if we have two co. abc and xyz what is the treatment of rent paid by one company on behalf of othar.what are the journal entries in the books of both companies

 

For the rent payment to your director, the journal entry should be a debit to the Rent Expense account and a credit to the Director's Account, reflecting the payment made for office use. For the March 2014 rent paid in April 2014, you should record it in March's accounts as a debit to Rent Expense and a credit to Rent Payable, then adjust in April with a debit to Rent Payable and a credit to Cash or Bank, aligning with the actual payment date.





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