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Liza rents her property to tenant. In the year ended 31 December 2006, it received 280 000 $.
Balance on rental account is:
31 December 2006 13400 Dr
31 December 2005 12300 Crquestion: write up the T-account for rental income for the year ended 2006 31 December.
I have the answer but I can’t understand why both of this
31 December 2006 13400 Dr
31 December 2005 12300 Cr
in t- account are on the credit side .
can someone explain pleasethere is no more information.
and I only want know answer on this.why both of this
31 December 2006 13400 Dr
31 December 2005 12300 Cr
in t- account are on the credit side .that explains why are they at the same side.
as we want to know the 2006 year rental income , 31 December 2005 12300 Cr
12300 is the closing balance and if closing balance is in credit then its opening will be in debit. so I thought that both of them will be in debit side . but in the answer they are on the credit sideI think it should be wrong in your reference. when the rental account’s balance is credit this means we have prepaid income, extra money received than accrued rent income which relates to next years.
I don’t understend where is a problem?
Rental income
Dr
Cr
Bal. b/d 13 400
Income 254 300 ________ Payment 280 000
Bal c/d 12 300
_______280 000________________280 000________________________ Bal b/d 12 300
You have a question about ” Bal c/d 12 300″ ?
@bokatoff said:
I don’t understend where is a problem?
Rental income
Dr
Cr
Bal. b/d 13 400
Income 254 300 ________ Payment 280 000
Bal c/d 12 300
_______280 000________________280 000________________________ Bal b/d 12 300
You have a question about ” Bal c/d 12 300″ ?
where is your CR 12.300 balance? you had it last year as a prepaid income, where should be its effect?!
Sorry, vise versa (I reverced 2005 and 2006)
Rental income
Dr
Cr
________________________ Bal. b/d 12 300
Income 305 700 ___________ Payment 280 000
________________________Bal c/d 13 400
_______305 700________________305 700
Bal b/d 13 400
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