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Entry for 5 years rent paid

A/c entries 508 views 3 replies

Onkar

Student

47 Points Joined January 2009

If Sunil, a businessman runs shop in his cousin's office space for zero rent. After 5 years his cousin demands for rent of 5 years. No agreement was entered. Now, Mr. Sunil pays rent of Rs. 60,000 to his cousin. What will be accounting entries in Sunil's books.

Replies (3)

CA. Roopali Kadam

Jobs on assignment basis.

1481 Points Joined December 2009

Originally posted by : Onkar
	If Sunil, a businessman runs shop in his cousin's office space for zero rent. After 5 years his cousin demands for rent of 5 years. No agreement was entered. Now, Mr. Sunil pays rent of Rs. 60,000 to his cousin. What will be accounting entries in Sunil's books.

Rent A/c Dr 60000

To Cash/Bank A/c 60000

Since there was no error or omission made by Sunil, regarding this transaction

this is not a prior period item

Arvind Sharma

CA Final

149 Points Joined February 2014

Yes the above entry is correct. The expense will be written off completely this year itself. No adjustment has to be done regarding pre/post matching.