CCI Online Learning
What do you want to learn today?
     
CIBIL

Upgrad

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Treatment of rent received in accounts.


Mahesh Kapadia   03 June 2020

Mahesh Kapadia

 1 likes  109 points

| My Other Post

Rent received from shop let-out.
Please help me to give treatment.

avater

shadab shaikh   03 June 2020

shadab shaikh

 8 likes  114 points

View Profile | My Other Post

Bank A/C Dr
To Rent(profit and loss account) cr
(being received from shop let out)

avater

Mahesh Kapadia   03 June 2020

Mahesh Kapadia

 1 likes  109 points

View Profile | My Other Post

OK sir but can I show like............
Bank A/c Dr.
To proprietor capital A/c
Means my profit and loss account only show my professional income which is directly utilized to show in ITR. Please help me can I do so

avater

shadab shaikh   03 June 2020

shadab shaikh

 8 likes  114 points

View Profile | My Other Post

You Can do it but Rent will be considered as an introduction of capital in your business of professional services
but you need to pay tax on rent under house property

1 Like
avater

Mahesh Kapadia   03 June 2020

Mahesh Kapadia

 1 likes  109 points

View Profile | My Other Post

OK thanks sir then what is advisable treatment also guide me to adjust bank interest

avater

Mahesh Kapadia   03 June 2020

Mahesh Kapadia

 1 likes  109 points

View Profile | My Other Post

No interest received from bank

avater

shadab shaikh   03 June 2020

shadab shaikh

 8 likes  114 points

View Profile | My Other Post

The same way
Bank a/c
To Intrest

Intrest A/c dr
to capital A/c

but make sure you need to pay tax under IFOS

avater

Mahesh Kapadia   03 June 2020

Mahesh Kapadia

 1 likes  109 points

View Profile | My Other Post

Thanks a lot sir. But let me know which is advisable

Bank A/C Dr
To Rent(profit and loss account) cr
(being received from shop let out)
Or
Bank A/c Dr.
To proprietor capital A/c

avater

shadab shaikh   03 June 2020

shadab shaikh

 8 likes  114 points

View Profile | My Other Post

See according to me it will be
Bank a/c dr
To capital account
(Narration Being rent received and invested in business)

avater

Mahesh Kapadia   03 June 2020

Mahesh Kapadia

 1 likes  109 points

View Profile | My Other Post

OK thanks for your quick response.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Bajaj Finserv


Trending Tags
GST Live Class    |    x