Posted by Erick on October 01, 2003 at 22:38:23:
Entering the rental income and lease payments are pretty straightforward so, don’t make it harder than it is. What you should do is consider the two as separate transactions as they are, accounting-wise. The rent increases Cash-Debit(an Asset account) and Credit-Rental Income (Income account). The lease payment is Debit-Rent Expense (Expense account) and Credit-Cash (Asset).
Pretty basic. Sound good?