Normally our tenant pays us rent in the amount of $10,427.31 per month. (I have this entry as a recurring transaction). Last month however, she gave me a cheque totalling $10,427.36 ($0.05 more than normal). I didn't notice it at first, and deposited the cheque.
When it came time to post the transaction, I did this:
dr Accounts receivable $10,427.31
cr rent $10,427.31
The receipt was posted as follows:
dr Bank $10,427.36
cr Accounts Receivable $10,427.31
cr prepaid sales/deposits $0.05
Is this correct?
Also, this month, she paid the rent in the correct amount ($10,427.31). What happens to the $0.05? As of now it's an outstanding credit to them. Should I ask them in the future to issue me a cheque for $10,427.26 to offset this mistake or could it be considered an immaterial amount for me to be concerned about?
Thanks.
