Journal Entry Please

As soon as you received invoice from real estate the entry will be

Rent payable account debit

Real estate name account is credit with entire amount120000

when you actually paid to real estate then the entry will be

Real estate account debit

Bank account credit with the entire amount 120000

I have a question here-So for the month of Jan,Feb March- shouldn't the payment of 10k each be shown on my income statement??

Means your P&L Account?

Yes Sir-Because for the month of Jan Feb and March (Monthly rental is10k) (10k is supposed to be paid but it is not paid and it is due) .So how should that is to be shown as an expense in the P and L,how is that to be shown.

Thanks

Yes, Ji, 

As per 145(1) -Assesee can maintain a cash /mercantile system of accounting regularly.

If you maintain books of accounts on a mercantile / due basis - you can claim the same in the P&L

Ji, You understand...

Oh Ok,Thank for that information Sir.So could you let me know what entry should be passed in feb and march with regard to the rent expense which effects the P and L.

Thanks so much for your assitance and quick response.

Most Welcome Ji, 

The entry is

Rent Payable (Current Liability ) Dr Company Name (Building Owner) Cr.

Hi,Sir,

Sorry,but this is confusing me more now.Is this entry the first entry when the invoice is received and if yes, could you post the entry which will take place in End of Jan,Feb and March towards the Rent Expenses of (USD 10000/-) (Which should effect the P and L).Also, as Mr Ashwin has stated I dont understand How the payable entry comes in as a Current Liability.

Thanks for your support.

Journal Entry.

Rent Expense (Indirect Expense )  Dr

To Rent Payable (Current Liability)

Ji, Sorry for the inconvenience.