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Rent adjustment from security deposit

Accounting Entries 4121 views 3 replies

DEAR SIR/MADAM,

RENT SECURITY DEPOSIT BY CASH FOR RS. 50000 & ADJUSTMENT FROM SECURITY DEPOSIT FOR RENT 2 MONTHS(MAY & JUNE 2015, 15000*2=30,000) & BALANCE AMOUNT 20,000INR RECEIVED BY BANK A/C.

WHEN PAID FOR SECURITY DEPOSIT.

DR.      RENT SECURITY DEPOSIT A/C   -   50,000

                            TO CASH A/C

WHEN ADJUSTMENT FROM RENT SECURITY DEPOSIT FOR RENT 2MONTHS(MAY & JUNE 2015, 15000*2=30,000) & BALANCE AMOUNT 20,000INR RECEIVED BY BANK A/C.

TO  RENT SECURITY DEPOSIT    -  50,000

DR. RENT M/O MAY 2015               -  15,000

DR. RENT M/O JUNE 2015              -  15,000

DR.  BANK A/C                                  - 20,000

IS ENTRY CORRECT? IF YES THEN,  WILL BE ENTRY FOR RECEIPT VOUCHER OR JOURNAL VOUCHER?

IF NO, THEN WHAT WILL BE ENTRY?

Replies (3)
Yes, entry is correct and use receipt voucher to record this entry because Journal Vouchers are used to adjust the debit and credit amounts without involving the cash or bank accounts.

Alternatively, u can make 2 entries also:

1) Journal: Rent Dr To Deposit (for adjustment)

2) Receipt: Bank Dr To Deposit (for balance received)

DEAR SIR/MADAM,

WHEN ADJUSTMENT FROM RENT SECURITY DEPOSIT FOR RENT 2MONTHS(MAY & JUNE 2015, 15000*2=30,000) & BALANCE AMOUNT 20,000INR RECEIVED BY BANK A/C.

TO  RENT SECURITY DEPOSIT                       -  50,000 

DR. RENT M/O MAY 2015               -  15,000

DR. RENT M/O JUNE 2015              -  15,000

DR.  BANK A/C                             - 20,000

WHY THIS ADJUSTMENT ENTRY WILL IN JOURNAL VOUCHER. PLEASE EXPLAIN IT?


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