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Firm's Rent waived by landlord accounting

Accountancy

Is there any accounting treatment for the rent waived by landlord during pandemic Does it is considered as gain for the purpose of accounting?

Anjali S

CA Inter

★ 0

29-Apr-23 23:30

314

Answers (8)

Its savings not gains. No actual outflow.

Sugam SM

CA Final

★ 9K+

30-Apr-23 09:43

Sugam SM

Its savings not gains. No actual outflow.

So it is not recorded in books of accounts right?

Thread Starter

Anjali S

CA Inter

★ 0

30-Apr-23 10:00

Thread Starter

Anjali S

So it is not recorded in books of accounts right?

Yes

Sugam SM

CA Final

★ 9K+

30-Apr-23 11:47

Will your answer be same if the firm is using the building of landlord for free as the landlord is proprietor'friend/relative

Thread Starter

Anjali S

CA Inter

★ 0

30-Apr-23 12:08

Thread Starter

Anjali S

Will your answer be same if the firm is using the building of landlord for free as the landlord is proprietor'friend/relative

That will be shown as capital for the business

Sugam SM

CA Final

★ 9K+

30-Apr-23 12:12

Building To capital

Sugam SM

CA Final

★ 9K+

30-Apr-23 12:13

Sugam SM

Building To capital

Firm is only using it , building is not transferred to the firm In other word the rent is free for the firm

Thread Starter

Anjali S

CA Inter

★ 0

30-Apr-23 12:15

If rent waived off there is no accounting requirement. However as you move to CA Inter/CA Final you will understand the concept of lease accounting where you will see the impact of rent waived etc.

CA Suraj Lakhotia

Admin

30-Apr-23 15:28