How to calculate the rent in advance and how to amortize it every month in the future?

After receiving the rent invoice issued by the property management company (3,000 yuan per month, for example once every three months), when paying the rent:

Borrow: advance payment-rent 9000 yuan.

Loan: 9000 yuan in the bank.

Then included in the current month's expenses:

Borrow: management fee-rental fee is 3000 yuan.

Loan: advance payment-rent 3000 yuan.

The second and third months are included in the expenses in batches in turn, and the entries are the same as the second month.

Extended data:

"Prepaid account" is used to calculate the amount paid by the enterprise to the supplier according to the contract. Under the account of "advance payment", detailed accounting should be carried out according to the subsidiary ledger set by the purchasing unit. Enterprises with less prepayments can also directly debit the prepayments to accounts payable.

In enterprises with less prepaid business, prepayments can also be accounted for by accounts payable. When the enterprise prepays the payment, it debits the accounts payable, and it is deducted after receiving the purchase payment. However, under this method, debit balances may appear in some detailed accounts of accounts payable.

At the end of the period, the debit balance of the accounts payable subsidiary ledger should be listed as an asset item in the balance sheet, and the credit balance of each subsidiary ledger should be listed as a liability.

Enterprises with many prepayments need to establish a subsidiary ledger for each customer, listing the prepayment date, specifications and quantity of purchased goods, prepayment amount, arrival date and cancellation date.

The advance payment of an enterprise shall not be set aside for bad debts. However, if there is conclusive evidence that the nature of the enterprise's advance payment has changed, or there is no hope of receiving the purchased goods due to the bankruptcy or cancellation of the supplier, the amount originally included in the advance payment should be transferred to other receivables, and the provision for bad debts should be made according to regulations.

Baidu Encyclopedia-Prepaid Account