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Pass the journal entry

CPT 1408 views 6 replies

Harish Kumar

IPCC

475 Points Joined June 2012

Pass the journal entry :-

1). Office taken on Rent, paid towards office deposit to Mr. M.C patel vide Ch. No. 636253

Replies (6)

CA Gaurav Ajit Potdar

Chartered Accountant

846 Points Joined June 2010

Rent Deposit Dr

Cr Mr M C Patel

Bhupesh

student

353 Points Joined December 2008

Rent deposit dr To cash a/c rent deposit will be shown on assets side of bs since cash is already paid it will be credited.

Rajiv Limbachiya

Deputy Manager

140 Points Joined February 2012

Rent Deposit A/c Dr. (Under Deposit Group) To Bank A/c Cr

CA D.C. Bansal

Accounts Head

283 Points Joined November 2007

Rent Deposit..................Dr.

To Bank A/c...............Cr.

CA Prateek Garg

CA in Practice

1447 Points Joined November 2009

Rent Deposit A/c ..........Dr. XXX

To Bank A/c XXX

However if Deposit is non Refundable then Entry Should be..........

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

To Bank A/c XXX

Jag Bhushan Sharma

Faculty in a B-School

633 Points Joined November 2009

As Prateek says, if rent deposit is unrefundable, then it should be treated as deferred revenue expenditure and should be written offer over the entire tenure of the lease. I am attaching herewith a link which is very useful for CPT students. You are requested to kindly give me your feedback.

https://www.youtube.com/user/jbsclasses