Sub leasing or share renting expenses - How to create or register this income

Aluzardo · ‎July 23, 2021

We recently moved to a new location, my partner agreed to share the expenses to 50/50, however, the lease is only in my name.

How do I register first:

Security deposit (his company gave me half - How do I get in in the security deposit "asset" account)

Rent _ I have to invoice rent to him, but this is a non-operating income, Do I create a "product or service" for this? Do I discount or add it to my rent expense account?

ANy help will be greatly appreciated!

Rustler · ‎July 24, 2021

Assuming you pay the rent and then invoice him for his share.
Set up the accounts like this
Rent Expense
>> Rent exp share

Book your rent payment to rent expense, and book his portion when he pays it to the Rent exp share account. It will act as a contra account lowering the total rent expense amount.

A service item used on the invoice which links to the Rent exp share account will work.

A security deposit is booked to an asset account, and his share would book to a liability account

Aluzardo · ‎August 04, 2021

Thank you so much!

Aluzardo · ‎August 04, 2021

This Share expense account should be entered as Other income (misc. Income), correct?

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Sub leasing or share renting expenses - How to create or register this income