Accounting of rent

As per AS-19 on leases, for operating leases, the lessee should expense lease rental on a straight line basis. You will total all rent payable and divide it by number of years/months and expense an equal amount each year.

CA Suraj Lakhotia

Admin

13-Apr-22 17:09

So how will the escalation part will be accounted in the books

Thread Starter

Swathi Krishna

CA Final

★ 8K+

13-Apr-22 22:23

Add up all rent amounts including escalation and expense on SLM difference between expense and amt paid will be shown as a liability

CA Suraj Lakhotia

Admin

14-Apr-22 06:29