Accrued and Prepaid Rents

[Jeremy007]

Can anybody help me to undertand the following rent receiveables account? Yur help is highly appreciated.

Rent
30/06/2004 Arrears of rent 3,800 30/06/2004 Advance rent 2,400
Rent to be transferred to SOCI (balancing figure)84,000 Cash received 83,700
30/06/2005 Advance rent received 3,000 30/06/2005 arrears of rent 4,700



What I can't quite understand is that why advance rent and arrears of rent on 30/06/2005 are respectively on the debit side and the credit side, while the opposite is true of the advance rent and arears of rent for the previous year (2004)?
My understanding is: rent a/c in this case is an asset a/c, so 2004's arrea rent is taken as asset, so on the debit side, and 2004' advance is regarded as liability, so on the credit side.
But I can't make sense of the entries for the rents in 2005.
PS: sorry about the mess of the presentation of the account, as I can't paste a table properly on this forum.

[Sonal]

is this your question?
[IMG]'http://getthroughguides.co.uk/forum/vbimghost.php?do=displayimg&imgid=169']

[Sonal]

if the account, which i have prepared is the correct, it is an account of 'rent received".

Calculation

Rent received-----------------------83700
Add: Arrears of current year----------4700
Less: Arrears of previous year--------(3800)
Less: Adv received of current year---(3000)
Add: Adv received of previous year----2400
Rent to be transferred to SOCI-------84,000

Here current year is 2005 and previous year is 2004.

Adv received income for the current year is considered as a liability and arrears of income for the current year is considered as an asset. And vice-versa for the previous year.

Hope this helps in making journal entries of the given account.

[Jeremy007]

"Adv received income for the current year is considered as a liability and arrears of income for the current year is considered as an asset. And vice-versa for the previous year."

Thanks a lot Senal. I really appreciate your efforts in helping me. The above statement has cleared all my misunderstanding and confusion. I now know where my problems lie.