513 Partial Month (Pro-Rata) Income (Closed End Lease)

523 Partial Month (Pro-Rata) Income (Open End Lease)

Lease & Rental Activity

 

Sales Synopsis

Account 513, Partial Month (Pro-Rata) Income (Closed End Lease) and Account 523, Partial Month (Pro-Rata) Income (Open End Lease) are established to record Partial month lease payments.  In some cases, leases may be written to allow for payments on a weekly basis.

Debits

Credits

 

  1. The amount of Partial Month Lease payments received and accrued from lease customers

 

Example 1

Record cash of $184 for a partial month lease income on a new Closed End Lease of $175 and sales tax of $9.

Journal: Cash Receipts

Entry:

 

Debit

Credit

Account 201

Cash on Hand

$184

 

Account 513

Partial Month (Pro-Rata) Income – Closed End Lease

 

$175

Account 324

Sales Taxes Payable

 

$9