May 03, 2022/ Steven Bragg
Prepaid rent is rent paid prior to the rental period to which it relates. Rent is commonly paid in advance, being due on the first day of that month covered by the rent payment. The landlord typically sends an invoice several weeks early, so the tenant issues a check
payment at the end of the preceding month in order to mail it to the landlord and have it arrive by the due date. This presents a problem for the tenant, since the payment would normally appear in its income statement as rent expense in the period in which the invoice was entered in the accounting software – however, since the payment was recorded and the check was cut in the month before the period to which the payment relates, it is actually prepaid rent. Therefore, a tenant
should record on its balance sheet the amount of rent paid that has not yet been used. The proper way to account for prepaid rent is to record the initial payment in the prepaid assets (or prepaid rent) account, using this entry:
In short, store a prepaid rent payment on the balance sheet as an asset until the month when the company is actually using the facility to which the rent relates, and then charge it to expense. A concern when recording prepaid rent in this manner is that one might forget to shift the asset into an expense account in the month when rent is consumed. If so, the financial statements under-report the expense and over-report the asset. To avoid this, keep track of the contents of the prepaid assets account, and review the list prior to closing the books at the end of each month. The accounting treatment is different under the cash basis of accounting, where expenses are only recorded when payment is issued. Thus, a rent payment made under the cash basis would be recorded as an expense in the period in which the expenditure was made, irrespective of the period to which the rent payment relates. You can make payment with any of the following modes: If you would like to pay your monthly rental by GIRO, you will need to complete and submit
the Interbank GIRO (IBG) application form to us. As an existing tenant, you can access the pre-filled IBG application form via My HDBPage using your Singpass. If you are not the tenant, you can access the online IBG application form via our e-Service and provide your flat/ bank details. The online application form is self-addressed. Please complete and print the form before mailing it to us for the authentication of your signature/ thumbprint by the bank. Alternatively, if you have an internet banking account with OCBC or UOB, you can sign up for GIRO online using the access code and PIN assigned by the respective banks. GIRO commencement and deductionWe will inform you of the GIRO commencement date as soon as the bank approves your GIRO application. The rent will be deducted from your GIRO bank account on the 28th of each month. If the first deduction is unsuccessful due to insufficient funds in the bank account, a second attempt for deduction will be made on the 6th of the following month. In cases where the date falls on a Saturday, Sunday, or a public holiday, the GIRO deduction will be made on the next working day. eNETS debit or PayNow via SGQRThese are payment modes where payments are debited real time from the payers’ bank account. You need to apply for an internet banking User ID and PIN with participating banks before using our e-Service to make payment. Banks that accept both eNETS debit and PayNow via SGQR
Banks that only accept PayNow via SGQR
Please check with the respective banks on your daily withdrawal limit for these payment modes before making a payment. Do note that some banks may also require 2-factor authentication for payments above a certain amount. Internet bankingYou can make the rental payments using the internet banking services offered by:
Cash/ NETSYou can pay your rent via cash/ NETS/ cheque at any HDB Branch. You can also pay the current month’s rent via cash and NETS at your Town Council office. AXS payment channelsYou can make payment through any AXS kiosk, AXS e-Station, or the AXS m-Station mobile application. Late payment chargesRent is due and payable on the 1st of every month. If payment is not made within the month, a late payment charge will be imposed. This charge is based on the outstanding balance at the end of the month. Payment received will first be used to settle the outstanding late payment charges. Any balance will then be applied towards the payment of other outstanding charges. If you are currently paying through GIRO, the late payment charges and the arrears amount, including your current monthly charges, will be deducted from your bank account on the 28th of the month. If the first deduction is unsuccessful due to insufficient funds, a second deduction will be attempted on the 6th of the following month. Revised basis for imposing late payment charges The computation basis for late payment charges has been revised from 1 April 2008. The late payment charge is dependent on the average prime lending rate determined by the Ministry of Finance. The current rate is 7.5% (average prime lending rate of 5.5% + 2%) per annum. The rate for late payment is reviewed annually and fixed on 1 April. Late payment charges will continue to be imposed based on the outstanding rental at the end of every month and is rounded up to the nearest five cents. Recommended
Is rent due on the 1st or 31st Ontario?Rent is due on the actual day listed in the lease — e.g. September 1st. Payment received even a day later, is considered late — e.g. September 2nd.
Do you pay rent at the start or end of the month UK?Rent in advance
This means that you will pay each month's rent at the beginning of that month. This can cause problems for tenants who get help from benefits to pay their rent. Benefits are always paid at the end of the month, and can't be paid in advance.
What happens if you move in the middle of the month?Most landlords will prorate rent if you move in during the month, but some may have a problem with prorating rent for move out. That's why you should always check with your landlord and get it in writing, just to make be sure.
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Is rent due at the end of the month
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