A college owns a hostel which it depreciates in its own books.Rent received from the hostel is not recorded in the college books of accounts but other books of account.My query is should routine repair expenses be debited to the other books of accounts where the income is recorded as per Matching concept?Or should it be debited in the college books?
If the college showing the hostel premises as a asset in its records, both income & expenditure on the said premises should be in the same set books of a/cs only. not in other set of books of accounts.
MATCHING CONCEPT SHOULD BE FOLLOW. NO DIFFERENT SET OF BOOKS OF ACCOUNT WILL BE MADE IN ABOVE CASES.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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