Sravanthi (CA Final ICWA Final & M.B.A) (737 Points)
02 August 2012hai
when the lease amt is paid in lumpsum in the first year itself. how the accounting entry for this? whether the amt paid will be write off over the lease period? any consequences will be arise in this issue in tax view?
pls reply very urgent
thanks in advance
CA Srikanth Yadav
(Chartered Accountant)
(3162 Points)
Replied 02 August 2012
Bank A/c Dr. xxxx
To Lease rent A/c xxxx (the amount which pertains to this year)
To Advance Rent A/c xxxx (the balance of the amount received)
CA Srikanth Yadav
(Chartered Accountant)
(3162 Points)
Replied 02 August 2012
From the 2nd year onwards,
Advance Rent A/c Dr.
To Lease Rent A/c
Sravanthi
(CA Final ICWA Final & M.B.A)
(737 Points)
Replied 02 August 2012
CA Srikanth Yadav
(Chartered Accountant)
(3162 Points)
Replied 02 August 2012
In that case just reverse the entries.
1. When payment is made:
Lease rent A/c Dr. xxxx (the amount which pertains to this year)
Advance Rent A/c Dr. xxxx (the balance of the amount paid)
To Bank A/c xxxxx
2. From the second year onwards,
Lease Rent A/c Dr.
To Advance Rent A/c
CA Srikanth Yadav
(Chartered Accountant)
(3162 Points)
Replied 02 August 2012
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