I have just paid my rent for February 2015 and subsequently received my invoice. My question is do l post the invoice now or hold on to it until February and the payment l have made how do l treat it. Advice on the accounting treating and implications.
post the invoice now however note it is a prepayment
DR: Rent Prepaid A/C-SOFP
CR: Cash/Bank A/C-SOFP
(For books AS At end of January)
CR: Rent Prepaid A/C-SOFP
(For books As At end of February)