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Journal entry for rent paid/due?

vinayak (accountant) (255 Points)

28 June 2014

We are private LTd co. We are paying Rs.10000 p.m. as rent to our 1 director for using our office. What should be Journal entry and Payment entry for this. Should I credit directors account or rent payable account? What entry should I passed for March 2014 rent which was paid in April 2014?

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24 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5150 Points)
Replied 29 June 2014

The journal entry in the month of March follows.

Rent a/c Dr

To Rent payable a/c

The journal in the month of April,follows

Rent payable a/c Dr

To bank a/c

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vinayak (accountant) (255 Points)
Replied 30 June 2014

Originally posted by : Rama chary
	The journal entry in the month of March follows. Rent a/c Dr To Rent payable a/c The journal in the month of April,follows Rent payable a/c Dr To bank a/c

But how director will show this transaction in his book? Should UI credit Director's account and debit rent A/c?

CA Sanket Gujar (Professional) (74 Points)
Replied 30 June 2014

1. Payable entry

Rent A/c ........dr

To rent payable

2. Payment entry

Rent Payable dr

to Cash/bank

Also check TDS provisions for directors and also mention it in tax audit schedule

ajnas (accountant) (21 Points)
Replied 10 February 2016

Ankit Chauhan (Accountant) (41 Points)
Replied 16 January 2017

sir if we have two co. abc and xyz what is the treatment of rent paid by one company on behalf of othar.what are the journal entries in the books of both companies

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brahmam yata (2 Points)
Replied 13 February 2017

In bout the companies

Rent a/c. Dr

To. Cash a/c.

Is the entry for rent paid to any person or company

Shiv Shankar (Accountant) (78 Points)
Replied 02 September 2017

how to pass rent entry in gst ............................

ajeet (ACCOUNTS MANAGER) (22 Points)
Replied 21 November 2017

JV- RENT A/C (INDIRECT EXP)

TO RENT PAYABLE (PROVISION)

PAYEMNT- RENT PAYABLE

TO BANK/CASH

Ami Soni (2 Points)
Replied 28 June 2018

wht is the entry for the House Rent paid ?? In tally House rent under which head

Rammi_RP Rawat (Accountant ) (386 Points)
Replied 28 June 2018

Rent Expanses Under Indirect Exp.

Dr. Rent Exp. .......1000.00

Cr. Bank / Cash ......1000.00

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(Guest)

For rent due

Rent A/c....dr 40,000

To landrord a/c 40,000

For payment of rent

Landlord a/c..dr 40,000

To Cash/Bank 40,000

Puneet Taneja (Finance Professional) (1149 Points)
Replied 31 October 2020

Journal entry for rent due is :

Rent a/c Dr

To Rent payable a/c

Journal entry for rent paid is:

Rent payable a/c Dr

To bank a/c

shahyar husain (1240 Points)
Replied 05 December 2020

The initial journal entry for prepaid rent is a debit to prepaid rent and a credit to cash. These are both asset accounts and do not increase or decrease a company's balance sheet.