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Rent entry

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Abdul Rauf

Accounts Practicener

69 Points Posted on 24 January 2017

Dear Freinds,

I received a rent bill of RS 6325 along with service tax.

Rent Bill 5500/-

Service Tax : 770/-

Swach Bh : 27.5/-

Krishi: 27.5/-

How can i pass this journal entry and payment entry. Please also mention the how many ladger create and under comes which category.

I hope i will get the good response from your side.

Thanking you

Replies (1)

Suresh Pai S

Tax Consultant

748 Points Posted on 24 January 2017

I am assuming that you are paying rent.

In case you are a service provider who can claim input tax credit, debit rent , service tax and cess separately.Classify rent under expenses and tax and cess under assets.

Credit may go to the creditor or cash/bank as applicable.

In any other case you can classify the whole debits as expenses.

(Please improve your spelling and grammar.)