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What is rent of warehouse in India?

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Anonymous

13y ago
Updated: 8/20/2019

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13y ago

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How is the entry of rent paid in cash for ware house?

Rent can be in expenditure nature or revenue nature. rent paid in cash for warehouse is in expenditure nature for the lender of warehouse, but is revenue to the owner of the warehouse.ACCOUNTING ENTRIES SHOULD BE AS FOLLOWSRENT PAID:DR-WAREHOUSE RENT ACCOUNTCR- CASH ACCOUNTIN CASE OF RENT RECEIVABLEDR:CASH ACCOUNTCR:WAREHOUSE RENT ACCOUNTACCORDING TO THIS TRANSACTION, THE LENDER OF THE WAREHOUSE WILL LOSE AND THE OWNER OF WAREHOUSE WILL GAIN.BY. WILLIAM JOSEPHwillymsukuma@yahoo.com


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