the owner of a company had paid the rent from Jan’11 to sept’11. But he didnt pay the rent for 2 months oct and november. On Dec 6,2011 he issued 4 cheques (one current dated and three post dated 14/1/12, 14/4/12, 14/7/12 ) each of value 76294(rent for three months, monthly rent 25431) for the period 14/10/11 to 13/10/12 . How should this be treated for the months of oct and nov for which no rent was paid. Entries pls.
I think for oct and nov you will have accrued rent expenses and payables.
Dr Rent 2*$25431 (will appear in I&E)
Cr Payables 2*$25431 (will appear in balance sheet)
You must be logged in to reply to this topic.