Mr. Raghav has rented a house. Ground Floor of the house is used for his business i.e. Grocery Shop & First floor of this house is used for his residence. The total rent for the house for a particular month was Rs 1,00,000. How much of this shall be recorded in books as an expense for the business?
Rs 50,000
According to business entity concept, Business is separate legal entity from its owner. Thus, Rs 50,000 shall be recorded as expense for the business.