sri lakshmi revathi (internship) (73 Points)
26 August 2014Dear all,
Is that mandatory to account rent on straight line basis as per AS-19 if there has been any rental increment as per pre-agreement???
For example:
If there has been a rental agreement between A&B for a building where as A ,owner and B, being tenant.if the monthly rental for fy 2013-14 has been 14000/- ,and an increment of RS.1000/- from the expiry of 1 yr. what should be the rent to be accounted in the books of B whether it is Rs .14000/- p.m or else in the other way????
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 08 September 2014
Dear
Rent can be accounted on Cash Basis provided if you paid arrears wherein 'Provisional" entry is necessary if its at the year end say March. Otherwise March Rent Paid in April alone can be provided.
CAclubindia
