Pass the journal entry :-
1). Office taken on Rent, paid towards office deposit to Mr. M.C patel vide Ch. No. 636253
Harish Kumar (IPCC) (475 Points)
22 December 2012Pass the journal entry :-
1). Office taken on Rent, paid towards office deposit to Mr. M.C patel vide Ch. No. 636253
CA Gaurav Ajit Potdar
(Chartered Accountant)
(846 Points)
Replied 23 December 2012
Rent Deposit Dr
Cr Mr M C Patel
Bhupesh
(student)
(353 Points)
Replied 23 December 2012
Rajiv Limbachiya
(Deputy Manager)
(140 Points)
Replied 24 December 2012
CA D.C. Bansal
(Accounts Head)
(283 Points)
Replied 24 December 2012
Rent Deposit..................Dr.
To Bank A/c...............Cr.
CA Prateek Garg
(CA in Practice)
(1447 Points)
Replied 25 December 2012
Rent Deposit A/c ..........Dr. XXX
To Bank A/c XXX
However if Deposit is non Refundable then Entry Should be..........
Rent A/c ................ Dr. XXX
To Bank A/c XXX
Jag Bhushan Sharma
(Faculty in a B-School)
(633 Points)
Replied 02 January 2013
As Prateek says, if rent deposit is unrefundable, then it should be treated as deferred revenue expenditure and should be written offer over the entire tenure of the lease. I am attaching herewith a link which is very useful for CPT students. You are requested to kindly give me your feedback.
https://www.youtube.com/user/jbsclasses
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
