outstanding rent paid Rs 5000 journal entry

Subject:
Accountancy
Author:
jordyn85
Created:
1 year ago

Answers 1

Answer:

Rent A/C Dr.

To Outstanding rent A/C

Payment made towards outstanding rent would be

Outstanding rent A/C Dr.

To Cash A/C

Explanation:

Rent is an expense so when expense increase Dr. when decreases Cr. here it is increasing so Dr.

Outstanding rent is an obligation for the business to pay so treated as liability, when liability increase Cr when decreases Dr here it is increasing so cr.

and in the adjusting entry we need to reverse the outstanding rent as Dr. and as we paid cash and cash is an asset and it is decreasing so Cr.

i hope I serve your concern.

thanks

Author:

bryson866
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outstanding rent paid Rs 5000 journal entry

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outstanding rent paid Rs 5000 journal entry