The accounting of operations of rent and calculations with lessors

In this article the order of the accounting of operations of rent and calculations with lessors, reflection of operations in accounting is stated.

Alla XARITONOVA, accountant-expert of IKK "Balance Club"

It is known that the rent can be charged and paid in different forms (monetary, natural, services). The taxation and maintaining the account depends on the chosen form of calculations. In consultation we will consider on examples various options of calculations with lessors.

Reflection of operations on rent of the land lots of agricultural appointment and property in accounting uche­te the tenant is regulated by requirements P (C) BU 14 "Rent".

The object of operative rent is considered by the tenant on zabalansovy account 01 Rented neoborotyony assets at the cost specified in the lease contract and the act of acceptance transfer.

The assets received in rent are reflected in it sche­te by types, for example, the land lots, buildings and constructions, cars and the equipment, transportyony means, etc.

The rest on the debit of account 01 increases at a poyostupleniye of the non-turnaround assets received in opeyorativny rent, and decreases on the account credit at their return to the lessor.

Rent

The rent added for using objekyoty of operative rent, it agrees P (C) to "Raskhoyoda’s" BU 16 and Recommendations No. 132 admits enterprise expenses.

According to the specified Recommendations the sum of a rent joins in structure:

• other direct costs ("Proizvodstyovo’s" account 23) if it can be direct otnese­na on concrete object of expenses (subitem 2.20);

• all-production costs (account 91) if the object of rent is used in the production purposes but to carry it to concrete object of expenses it is impossible (subitem 2.21 z);

• administrative expenses (account 92) if arenyodovanny assets are used for business management (subitem 2.23 "in");

• distribution costs (account 93) if the object of rent is used at realization of production, the goods, works and services (subitem 2.24 ye).

Accounting of calculations

Calculations with lessors are reflected in subaccount 684 Calculations for the added percent:

•  on the credit – charge of a rent,

• on the debit – its payment to lessors money, cost of given-out production and to­varov, the executed works, the rendered services on account of a rent, the withheld sums of the personal income tax.

The accounting of calculations for a rent is kept in the page Magazine warrant No. 8 – x. (Order No. 49).

The analytical accounting of calculations with lessors re­komenduetsya messages in the Sheet of charge and vypla­ty a rent for property and the earth, privedenyony in the annex 2 to Recommendations No. 37 (see a priyolozheniye to consultation).

Reflection order in accounting and tax uche­te the tenant of operations on rent ground uchast­kov agricultural appointment and property at individuals we will consider on numerical examples.

Example 1

Rent charge in monetary for­me, and debt repayment – agricultural products

The enterprise rents a zeyomelny site of agricultural appointment in cost of 50 400 UAH at the individual. By the lease contract it is provided a rent in the sum of 762,36 UAH. not indeksi­rovat and to pay two times a year money.

In 6 months of the current year the enterprise added a rent in the sum of 381,18 UAH., the personal income tax – 57,18 UAH is withheld. (381,18 UAH. x 15 %).

According to the statement of the lessor – on account of rent receivable – the enterprise sold it   grain of barley of a crop of the current year at the usual   price for the sum of 324 UAH. (381,18 UAH. – 57,18 UAH.). Fair value (prime cost) of realizoyovanny grain – 270 UAH.

At personal income tax deduction the raising factor 1,176471 (Law No. 889 item 3.4 is provided) in a danyony case isn’t applied, as the rent is charged according to the contract in a monetary form.

(UAH.)

Example 2

Charge and rent payment in a natuyoralny form

  The enterprise rents the production building received on account of a property share at the individual. Its cost – 25 000 UAH.

The lease contract provided a natural form of a rent: delivery in July of the current   year of 5 c of grain of wheat fodder. At will of   the parties the rent isn’t indexed.

Its size – 250 UAH. in a year. The usual price of 1 c of grain of wheat fodder a crop of the current year – 60 UAH. (including the VAT – 10 UAH.), fair value – 50 UAH.

Recognizing that according to the lease contract the income it is charged in a non-monetary form, the object of taxation of the personal income tax is defined with item 3.4 of the Law on profit, that is with application of the usual price for grain psheniyoets fodder and raising factor 1,176471.

In this example taxation object sostav­lyaet 352,94 UAH. (5 c x 60 UAH. x 1,176471). The sum of the personal income tax is equal 52,94 UAH. (352,94 UAH. x 15 %).

(UAH.)

Example 3

Charge and rent payment with a priyomeneniye of its different forms (monetary, natuyoralny and otrabotochny)

By the lease contract of the earth it is provided nachisleyony and payment of a rent selkhozproduktsiyoy, service (at the usual prices) and money – all for the sum of 1 008 UAH. in a year.

The indexed monetary assessment zemelno­go a site – 50 400 UAH.

Term of payment of a rent – on request of the lessor.

B July of the current year the enterprise on account of implementation of contract provisions carried out the following   economic operations:

• a grain waste of a crop of the current year at the contractual (usual) price for the sum of 48 UAH is given out. (including the VAT – 8 UAH.). Fair value on which they are credited – 40 UAH.;

 • services of a cartage in the contractual (usual) price for the sum of 12 UAH are rendered. (including the VAT – 2 UAH.), cost of services – 10 UAH.;

 • the part of a rent       by money in the sum of 24 UAH is added.

 In total it is added a rent for July of 84 UAH.   (48 UAH. + 12 UAH. + 24 UAH.)

As by the lease contract it is provided, in chastno­sti, and a non-monetary form of calculations, at definition of object of taxation of the personal income tax cost grain otxo­dov and services of a cartage we will calculate proceeding from the usual prices with application of factor 1,176471.

The object of taxation of the personal income tax is equal 94,59 UAH. [(48 UAH. + 12 UAH.) x 1,176471 + 24 UAH.].

The personal income tax sum – 14,19 UAH. (94,59 UAH. x 15 %).

(UAH.)

Recommendation to the tenant

To avoid application of raising factor, the enterprise should provide a monetary form of a rent in a rent dogoyovor, and then by a mutual consent on the basis of the statement of the lessor it is possible to sell on account of rent receivable agricultural products or predostav­lyat services.

Appendix

(approximate form)

VIDOMIST NO. 1

naraxuvannya that viplati orendno ї pay for Main that the earth

for 2007 rik

(UAH.)

                     Accountant Kovalenko

                                         (pidpis)

(On Balans-Agro newspaper materials).