what is the reason for putting rent for premises on credit side of profit and loss A/C
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what is the reason for putting rent for premises on credit side of profit and loss A/C
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hello mate
rent for premises has been put up on the credit side of the p&l account because it is a revenue income.
let's get it with a help of an example
like some people do not sell the building rather they put it on the rent for some long period of time like 50 years or something like that. which means given the building on lease. and the rent is already taken at starting only.
hope u get it