Journal entry for rent paid/due?

When you pay rent same month

Rent A/C Dr (Indirect Expenses)                                         

To Cash/Bank A/C 

(Being Rent paid for the month of ..............)

When you pay rent next month)                                                               

Rent A/C Dr (Indirect Expenses)                      

To Rent Payable / Mr. A  A/C (Under Current Liability)

(Being Rent Payable for the month of ..................)

A the time of paying Rent

Rent Payable A/c Dr

To Cash/Bank A/C

(Being Rent paid for the of month of .............)

The Institute of Chartered Accountants of India (ICAI) has issued guidance note on accounting for index futures and stock futures contracts from the view point of the parties who enter into such futures contracts as buyers or sellers

The full document can be viewed at https://www.tnkpsc.com/Image/Accountingderivatives.pdf

Pure journal Entry for rent-

Store rent A/c- Dr.       ...

Input CGST A/c Dr.     ...

Input SGST A/c Dr.     ...

To TDS 194I 10%        ...

To A/c Payable           ...

(Landloard A/c)

Rent A/c ...........Dr.

CGST A/c ...........Dr.

SGST A/c ...........Dr.

To Cash A/c

When Rent is paid

Rent a/c

To Bank

When Rent paid in advance

Prepaid Rent a/c

To Bank

When rent expense is incurred, it can be transfered from prepaid rent to rent expense, the entry will be:

Rent a/c

To Prepaid Rent a/c

When Rent received

Bank a/c

To Rent a/c

When Rent received in advance (if the amount received more than the actual rent amount)

Bank a/c

To rent received A/c (the actual amount)

To advance rent/Unearned rent a/c  (the advance received)

Section 194I- TDS on Rent- for companies
Exemption- refundable security deposit or advance on rent (TDS applicble on non-refundable security/advances)
Rent of plant, equipment and machinery- 2%
Rent of land, building, furniture or fitting -10%
Rent threshold limit- 240000/-
entry
Dr. Rent expense
Cr. TDS payable/owners account

Cr. GST payable
Cr. Rent payable
 

Tds is applicable when you pay rent even if your pay rent above 2.4 lakhs

For the rent payment to your director, the journal entry should be a debit to the Rent Expense account and a credit to the Director's Account, reflecting the payment made for office use. For the March 2014 rent paid in April 2014, you should record it in March's accounts as a debit to Rent Expense and a credit to Rent Payable, then adjust in April with a debit to Rent Payable and a credit to Cash or Bank, aligning with the actual payment date.

For the rent payment to your director, the journal entry should be a debit to the Rent Expense account and a credit to the Director's Account, reflecting the payment made for office use. For the March 2014 rent paid in April 2014, you should record it in March's accounts as a debit to Rent Expense and a credit to Rent Payable, then adjust in April with a debit to Rent Payable and a credit to Cash or Bank, aligning with the actual payment date.

Originally posted by : Ankit Chauhan
	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

For the rent payment to your director, the journal entry should be a debit to the Rent Expense account and a credit to the Director's Account, reflecting the payment made for office use. For the March 2014 rent paid in April 2014, you should record it in March's accounts as a debit to Rent Expense and a credit to Rent Payable, then adjust in April with a debit to Rent Payable and a credit to Cash or Bank, aligning with the actual payment date.