Rent paid rs 2000 in Jan and feb 2009. What will the entry
in Feb 1st 2009.
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Answer / sekhar
rent a/c dr 1000
prepaid rent a/c dr 1000
to cash a/c 2000
being one month rent paid in advance
| Is This Answer Correct ? | 15 Yes | 0 No |
Answer / nazeer hussain.h
Rent A/c Dr 2000
Pre Paid Rent A/c Dr 2000
Bank / Cash A/c Cr. 4000
(Since Rent paid in Jan exp booked in Jan, where as for Feb
rent paid in advance booked in prepaid a/c)
| Is This Answer Correct ? | 12 Yes | 3 No |
Answer / harsha
im am not sure wheather it is 2000 for jan and feb or for
jan it is 2000 and feb 2000 i will take it as 2000 rs paid
for both the month the journal entry will be
rent account dr 1000
prepaid rent account dr 1000
to cash account 2000
for rent paid for jan and feb
in feb the entry will be
rent account dr 1000
to prepaid rent account 1000
the prepaid rent gets knock off by rent account in month
of feb
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / manish vatsaya
On 1st Feb
Rent A/c -----------------Dr.1000
Prepaid Rent A/c----------Dr.1000
To, Cash/Bank 2000
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / raghav vijayan
this Question is clearly mentioned in which amount paid
per month in Rent
Rent A/c Dr 2000
Bank A/c 2000
I think so, leave your comments
| Is This Answer Correct ? | 3 Yes | 0 No |
1) Rent A/c Dr. 2000/-
To Rent Payable A/c 2000/-
(Being Rent Due for the Month of Jan)
2) Rent Payble A/c Dr. 2000/-
To Cash/ Bank 2000/-
(Being Rent paid for the M/o Jan)
Note- Same entry will be pass for Feb-)
Please leave your comment
| Is This Answer Correct ? | 7 Yes | 5 No |
Answer / sharada
rent payable a/c dr 2000
to cash a/c 2000
(being the jan salary paid in feb 1st 2009)
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / sharada r
31-1-2009 Rent A/c Dr 2000
To Rent payable A/c 2000
(Being the Rent due for the month of Jan)
1-2-2009 Rent payable A/c Dr 2000
To Cash A/c 2000
(Being the january month salary paid)
These are Accrual accounting transaction.
| Is This Answer Correct ? | 0 Yes | 0 No |
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What is 'TREASURY STOCK / TREASURY SHARES'?
DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?
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