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A company closing its acconts in december..its paying
10000/-as rent......in the month of august it paid 4 months
rent as advance...how will u account this

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A company closing its acconts in december..its paying 10000/-as rent......in the month of august i..

Answer / shekar r

In the month of august we Accounting like this
(Payment Entry)
prepaid Rent A/c Dr 10000
To Bank/cash Cr 10000

(Being the Rent paid in Advance)


In December (J V Entry)

Rent A/C Dr 10000
To Prepaid Rent A/C 10000

Same Like 3 month

Is This Answer Correct ?    11 Yes 0 No

A company closing its acconts in december..its paying 10000/-as rent......in the month of august i..

Answer / anil

that time we accounting in only august month that entry is
coming Advance Rent a/c Dr.
To, cash/Bank a/c

this entry posting in Payment ledger

Is This Answer Correct ?    7 Yes 3 No

A company closing its acconts in december..its paying 10000/-as rent......in the month of august i..

Answer / saba

as the rent is paid is advance in august entry come
Adance rent A/c dr
TO Cash A/c

For adjusting the rent in future in december Month
entry is
rent a/c dr
advance rent A/c

Is This Answer Correct ?    4 Yes 1 No

A company closing its acconts in december..its paying 10000/-as rent......in the month of august i..

Answer / amit agrawal

(Assuming Rent is due on the 1st day of every month.)

In the Month of August (Dr) (Cr)

Prepaid Rent A/c Dr 40000
To Cash/Bank A/c 40000
(When Paid)

(On 1st sept.)
Rent A/c Dr. 10000
Prepaid Rent A/c 10000

(On 1st Oct.)
Rent A/c Dr. 10000
Prepaid Rent A/c 10000

(On 1st Nov.)
Rent A/c Dr. 10000
Prepaid Rent A/c 10000

(On 1st Dec.)
Rent A/c Dr. 10000
Prepaid Rent A/c 10000

Is This Answer Correct ?    2 Yes 0 No

A company closing its acconts in december..its paying 10000/-as rent......in the month of august i..

Answer / hitendra singh shekhawat

1st entry will pass like this...

Prepaid expenses a/c dr.
To cash a/c

After that on 30/31 sep,oct,nov,dec will pass in such way..

Expenses a/c dr.
To prepaid expenses A/c

Is This Answer Correct ?    0 Yes 0 No

A company closing its acconts in december..its paying 10000/-as rent......in the month of august i..

Answer / ravipolina

it was the rent which was paid in advance for comming months
so we can treat this is rent paid in advance. so the journal
entry recorded at the time of advance paid for 4 months is
Advance rent a/c dr 10000
to cash /bank 10000


in the month of december entry will become as
rent a/c dr 10000
to cash/bank 10000

Is This Answer Correct ?    3 Yes 4 No

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