Question

Office Taken on Rent from Ansal Properties @ Rs. 15000/- Per Month, One Month Rent and Two month Rent as security deposit given by cheque

As  per me entry should be

1)Security Deposit A/c Dr. Rs.30000

2)Prepaid Rent A/c Dr. 15,000

       TO Bank A/c Rs.45,000

On 1st of next month

Rent A/c Dr. Rs.15,000

      To Bank A/c 15,000

As per me The Entry also can be made like this

Ansal Property A/c Dr. Rs.30,000/

    To Bank A/c   Cr.    Rs.30,000/-

(Being Security Deposit paid to M/s Ansal Properties for Office Space)

Prepaid Rent A/c Dr. 15,000/-

    To, Bank A,c Dr. 15,000/-

If we utilise the office for complete month then on first of next month we should make entry

Rent A/c Dr. 15,000

    To, Bank A/c Dr.15000

To Fitoos the Prepaid Rent Entry

It is possible that we only give Two month Security deposit and rent for the month will be actually paid on next month that too after receipt of rent receipt.

x+y<24,  2x+y<32,  x>0,  y>0

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