Question

Kia and Siya are partners in a firm sharing profits equally. Siya has given her property on rent to the firm on a monthly rent of ₹ 25,000. The firm paid her rent from April 2023 to January 2024 by cheque on 10th February 2024. Rent for the month of February and March was yet to be paid.

Pass the journal entries for the above transactions for the year ended 31st March, 2024.

Answer 1

Journal entries for the year ended on 31st March, 2024
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2024	Rent A/c   ...Dr.		2,50,000
Feb 10	To Bank A/c			2,50,000
	(Being rent for 10 months from April to January paid by cheque)
Mar 31	Rent A/c   ...Dr.		50,000
	To Outstanding Rent A/c			50,000
	(Being outstanding rent for February and March provided)
Mar 31	Profit and Loss A/c   ...Dr.		3,00,000
	To Rent A/c			3,00,000
	(Being total rent for the year transferred to the Profit and Loss Account)

Working note:

Total Rent for the Year (April 2023 to March 2024 = 12 months):

25,000 × 12 = 3,00,000

Rent Paid Upto January 2024 (April 2023 to January 2024 = 10 months):

25,000 × 10 = 2,50,000

Outstanding Rent for February and March (2 months):

25,000 × 2 = 50,000