Firm rent waived by landlord

30 April 2023

if firm' rent is waived by landlord during pandemic what is it's accounting treatment and does it is recorded as gain in books of accounts

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4 Replies

sabyasachi mukherjee (27107 Points)
Replied 30 April 2023

Provision created has to be reversed.

2 Like

CA SANDESH MAHIPAL (Practicing in GST and MSME ) (1985 Points)
Replied 30 April 2023

It's not an income. As advised by Other expert, You should reverse the provision which you would have created in that year.

2 Like

Yasaswi Gomes new (Finance ) (4492 Points)
Replied 30 April 2023

Provision for rent must be reversed

Dr. Rent

Cr. Payables

Will become

Dr. Payables

Cr. Rent expense

And make a footnote as per companies acts/provisions standard.

1 Like

Atharv Sankliya (1323 Points)
Replied 30 April 2023

Thanks all of you sir/mam

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