A company closing its acconts in december..its paying
10000/-as rent......in the month of august it paid 4 months
rent as advance...how will u account this
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Answer / shekar r
In the month of august we Accounting like this
(Payment Entry)
prepaid Rent A/c Dr 10000
To Bank/cash Cr 10000
(Being the Rent paid in Advance)
In December (J V Entry)
Rent A/C Dr 10000
To Prepaid Rent A/C 10000
Same Like 3 month
| Is This Answer Correct ? | 11 Yes | 0 No |
Answer / anil
that time we accounting in only august month that entry is
coming Advance Rent a/c Dr.
To, cash/Bank a/c
this entry posting in Payment ledger
| Is This Answer Correct ? | 7 Yes | 3 No |
Answer / saba
as the rent is paid is advance in august entry come
Adance rent A/c dr
TO Cash A/c
For adjusting the rent in future in december Month
entry is
rent a/c dr
advance rent A/c
| Is This Answer Correct ? | 4 Yes | 1 No |
(Assuming Rent is due on the 1st day of every month.)
In the Month of August (Dr) (Cr)
Prepaid Rent A/c Dr 40000
To Cash/Bank A/c 40000
(When Paid)
(On 1st sept.)
Rent A/c Dr. 10000
Prepaid Rent A/c 10000
(On 1st Oct.)
Rent A/c Dr. 10000
Prepaid Rent A/c 10000
(On 1st Nov.)
Rent A/c Dr. 10000
Prepaid Rent A/c 10000
(On 1st Dec.)
Rent A/c Dr. 10000
Prepaid Rent A/c 10000
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / hitendra singh shekhawat
1st entry will pass like this...
Prepaid expenses a/c dr.
To cash a/c
After that on 30/31 sep,oct,nov,dec will pass in such way..
Expenses a/c dr.
To prepaid expenses A/c
| Is This Answer Correct ? | 0 Yes | 0 No |
it was the rent which was paid in advance for comming months
so we can treat this is rent paid in advance. so the journal
entry recorded at the time of advance paid for 4 months is
Advance rent a/c dr 10000
to cash /bank 10000
in the month of december entry will become as
rent a/c dr 10000
to cash/bank 10000
| Is This Answer Correct ? | 3 Yes | 4 No |
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