What is Rent Received In Advance
Previously we studied about Prepaid Rent and Outstanding Rent , but here we will look into this topic that is What is Rent Received In Advance or Advance Rent Received. Rent Received in advance is a Current Liability and categorized as Unearned Revenue or Income or Income Receivable for company like rental company to provide services e.g. Housing Facility, Building Facility, Car Facility, etc., to his tenant or renter who paid advance rent to rental company monthly or as a security or any other reasons as required by the rental company at the time of Rental Agreement. Rent Received in Adva n ce is an example of Deferred Income . Rent Received In Advance Journal Entry Let’us take an example of a Real Estate rental company which received advance rent Rs. 30000 (Per Month Rs. 10000) from renter for 5 Months, on 1 st October, 2018 then we record the following Entry as shown below: ...