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HI,
I am posting a rent expenses entry via purchase invoices, where rent is being paid for 3 months along with some service charges in advance also for 3 months.
Eg: Rent expenses 10000 per month & Service charges 3000 per month from 01.12.18 to 28.02.19. Date of posting is 06.12.18
we have used the deferred schedule to calculate the prepaid expenses.
The accounting entry generated for the above scenario is as follows:
Date G/L Debit amt credit amt
01.12.18 - Prepaid expenses 1000
01.12.18 - Prepaid expenses 10000
01.12.18 - Rent 10000
01.12.18 - Rent 1000
06.12.18 - Prepaid expenses 33000
06.12.18 - Sundry creditors 33000
06.12.18 - Rent 30000
06.12.18 - Service charges 3000
06.12.18 - Rent 33000 **
01.01.19 - Prepaid expenses 1000
01.01.19 - Prepaid expenses 10000
01.01.19 - Rent 10000
01.01.19 - Rent 1000
01.02.19 - Prepaid expenses 1000
01.02.19 - Prepaid expenses 10000
01.02.19 - Rent 10000
01.02.19 - Rent 1000
** the effect for rent credit for 33000 is wrongly calculated since the expenses debited for the period 01.12 to 01.02 should be
Rent - 30k & service charges - 3k
whereas in current scenario it is being calculated as Rent - 27k & service charge - 6k.
You can write me back on my email in case you required any additional help
Regards
Kunjesh Shah
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