Hi Sunil
In companies,normally Expense is booked and approved and then Payment is made
Hence there should be ideally 2 entries
Exp Dr
To party
Party Dr
To Bank
In our case
Rent Dr
To Ansal
Ansal Dr
To Bank
For Security Depsoit
Security Deposit Dr
To Ansal
Ansal Dr
To Bank
Note
Security Deposit is not prepaid expense
It will be refunded to us at the time of vacation of property and not every month
Written on June 25, 2017, 5:51 p.m.