Car Rental Accounting treatment

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wazeer_81
Posts: 1
Joined: 08 Jul 2021, 15:00

Car Rental Accounting treatment

Post by wazeer_81 »

Dears,

If I have a car rental contract falls between two months E.g. starts on 25-06-2021 to 07-07-2021. Do I need to record the revenue for the first 5 days (from 25 to 30 -06-2021) or I need to recognize the revenue in July as the contract will be closed in July.
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Marek Muc
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Posts: 1627
Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland

Re: Car Rental Accounting treatment

Post by Marek Muc »

strictly speaking you need to accrue revenue for those 5 days of June as you already earned part of rental income as at 30.06.2021
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