TaxTMI 
TaxTMI 
Journal entry for office rent expense
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....ournal entry for office rent expense<br> Query (Issue) Started By: - Allauddin Patel Dated:- 10-9-2026 Last Reply Date:- 10-9-2026 Accounting - Auditing<br>Got 1 Reply<br>Companies Law<br>What is journal entry for office rent paid by proprietor from savings account ? Savings account also maintained in books of account of proprietor ... Reply By Sanjeev Agarwal: The Reply: If the proprietor....
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.... pays office rent from his personal savings bank account, but that savings bank account is also maintained in the books of the proprietorship, then the accounting depends on what that bank account represents in the books. If the savings account is treated as a business bank account The entry is straightforward: Office Rent A/c Dr. To Savings Bank A/c For example, rent Rs. 30,000: ....
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.... Particulars Dr. Cr. Office Rent A/c Rs. 30,000 To Savings Bank A/c Rs. 30,000 This is appropriate if the savings account is actually a bank ledger maintained as part of the proprietorship's books and the payment is being recorded through that account. But if the proprietor paid from his personal savings account Then you should not ....
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....credit the business bank account merely because the proprietor has a savings account that is separately maintained in the books. The proper entry would generally be: Office Rent A/c Dr. To Proprietor's Capital A/c Rs. 30,000 This represents additional capital introduced by the proprietor in the form of payment of a business expense. If you maintain a separate Proprietor's....
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.... Drawings/Personal A/c for such transactions, the treatment can differ depending on how the personal bank account is incorporated into the books. Key distinction: Is this savings account a business bank account appearing under the firm's/business books, or is it the proprietor's personal savings account whose transactions are being tracked in the books? That distinction determines the c....
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....leanest entry. If you tell me how you have created the ledger for this savings account (e.g., under Bank Accounts / Capital / Personal Account), I can give you the exact entry and explain the balance-sheet presentation.<br> Discussion Forum - Knowledge Sharing ....