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question abt rent payment

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › question abt rent payment

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by Sangria9.
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  • January 4, 2012 at 6:54 am #51153
    targetacca
    Member
    • Topics: 20
    • Replies: 15
    • ☆

    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.

    March 17, 2012 at 4:35 pm #92349
    Sangria9
    Member
    • Topics: 25
    • Replies: 282
    • ☆☆☆

    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)

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