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Got questions?

Here are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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Is rent an asset or expense?

Under the accrual basis of accounting, if rent is paid in advance (which is frequently the case), it is initially recorded as an asset in the prepaid expenses account, and is then recognized as an expense in the period in which the business occupies the space.

How to account for free rent under ASC 842?

Accounting for the free rent period and subsequent periods are as follows: Add the total cost of the rent payments for the entire lease period. Then divide this total amount of payments by the total number of periods in the lease, including any early access period.

Where can I get rent agreement in Bangalore?

First, you need to get the rent agreement printed on a stamp paper of appropriate value. Thereafter, you can visit the local sub-registrars office (SRO), along with two witnesses, to get it registered. The landlord and the tenant need to visit the SRO to sign the documents.

Does prepaid rent go away with ASC 842?

Prepaid rent: Any prepaid rent before the transition to ASC 842 will be added to the value of the right of use asset. The lessee would derecognize the prepaid asset, adding that amount to the right of use asset value. Accrued rent: Any rent owed at the transition date will be subtracted from the right of use asset.

How do I account for rent free period lessor?

To account for these free periods, as well as subsequent periods, the essential accounting is as follows: Compile the total cost of the lease for the entire lease period. Divide this amount by the total number of periods covered by the lease, including all free occupancy months.

How do I account for prepaid rent?

Accounting for prepaid rent with journal entries When rent is paid in advance of its due date, prepaid rent is recorded at the time of payment as a credit to cash/accounts payable and a debit to prepaid rent.

Is rent considered an expense?

Rent is any amount paid for the use of property that a small business doesnt own. Typically, rent can be deducted as a business expense when the rent is for property the taxpayer uses for the business.

How can I register my rental agreement in Bangalore?

Address proof and photo ID proof of the tenant. Address proof and photo ID proof of the owner. Demand Draft of the Stamp Duty and Registration amount. Two witnesses along with their photo ID proofs.

How can I make rent agreement online in Bangalore?

Track the delivery status of your agreement with just one click. Fill Details Online. Customise our template agreement as per your requirement and submit the draft. Stamping Printing. We print the agreement on a legal stamp paper. Agreement is Delivered! We deliver the printed agreement to you in 3-4 days.

What is the term for free rent?

Rent abatement is the legal term for free rent. Essentially, it means a period of time where the tenant (you) is not responsible for paying rent.

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