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DEVENDER THAKUR (Querist)
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14 July 2010 Hi Sir,
if we pay three months advance rental to a telephone company. then how will we pass entry? should it be divided in three months bills or not ?

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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14 July 2010 prepaid rent a/c Dr.
To cash/bank a/c

Rahul Gupta

Rahul Gupta (Expert)
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14 July 2010 Agreed with Mr Ravindra.
Adding to that, on actual telephone expenses, the entry will be >

Telephone Rent expenses..Dr
to Prepaid Rent...Cr.

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CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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14 July 2010 Agree & thanks Rahul ji

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 July 2010 QUESTION OF PREPAID RENT ARISES WHEN PAYMENT RELATES TO NEXT YEAR. IF PAID AS ADVANCE FOR CURRENT YEAR. THEN ENTRY SHOULD BE---

PARTY A/C DR.....
TO BANK/CASH....
TELEPHONE RENT A/C DR....
TO PARTY...

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