Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Thanks for requesting me.
Can you elaborate on what you mean by "booked as a journal entry against other income"? What was other income?
It's listed in the chart of accounts as " Rent received" and the account type is "other income".
So, I have two "rent received" accounts one with the account type "accounts receivable" and the other account type " other income". Both are income accounts, so I'm not sure that it matters. I just want to be sure of the correct way to post the transactions. Right now I have transactions in both.
If this is done to straighten the bookkeeping part then it does not matter as long as you can figure out that both are rental income. From the perspective of taxes, it would depend on the various deduction per property and may need to appear in its own separate column. The CPA would determine that but you should be able to note that this is real estate rental income and be able to attribute it to a certain property
okay, this is to straighten out the books. I couldn't figure out if 2 accounts were created for a specific reason, or whether it was an error. Thanks!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).