Our company rented a house for the manager and paid the amount for 6 months as well as the deposit in cash. The rental agreement is effective for a year. Can I draw up a note of expenses for this transaction? How to create the accounting entry?
Gross amount of monthly rent is recognized as an expense by being added to employee’s salary. The deposit is capitalised. It is not required to draw up a note of expenses. Bank receipt is enough.
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