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Journal

Raghvendra Nawalgaria (Partner) (90 Points)

28 July 2013

What should be the journal entry for the below mentioned transaction:

I share an apartment with 3 friends of mine whose monthly rental is 24000. My friends deposited 6000 each in my account and I paid Rs. 24000 to the land lord. What will be the journal?

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5 Replies

Babu P (Student) (85 Points)
Replied 28 July 2013

For Receiving cash from friends.

Dr. Cash A/c Rs. 24000/-

Cr. Fiend 1 A/c Rs.6000/-
Cr. Friend 2 A/c Rs.6000/-
Cr. Friend 3 A/c Rs.6000/-
Cr. Friend 4 A/c Rs.6000/-

For paying rent

Dr. Rent A/c Rs. 24000/-

Cr. Cash A/c Rs.24000/-

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CA SONIYA AGARWAL (self practice) (3005 Points)
Replied 28 July 2013

Amount Due for from friends for payment to landlord entry

friend 1 a/c dr 6000

friend 2 a/c dr 6000

friend 3 a/c dr 6000

to rent payable by friends 18000

Cash received from friends

cash a/c dr 18000

To friend 1 6000

to friend 2 6000

to friend 3 6000

Rent paid

landlords a/c dr 240000

to cash a/c 24000

1 Like

Shivani (Learner) (1881 Points)
Replied 20 September 2013

soniya

if i go by ur entry, then rent payable by friends and landlord account, both these accounts will still show up in my balance sheet !!

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 20 September 2013

Dear Raghvendra sir,

Entry would be:-
Rent dr. 6000 (own) (on due date)
    To Rent payable 6000
Cash dr. 18000 (3 friends) (on receiving from friends)
     To Rent payable 18000
Rent payable dr. 6000 (own) (on payment date)
      To cash 6000
Rent payable 18000 (of 3 friends) (on payment date)
       To cash 18000

Best Regards,
CA Lovely Arora
Lovely Arora and Associates
ca.lovelyarora @ gmail.com