Question

8. Rent due to landlord amounting to 10,000 will:
(A) Reduce cash and capital by 10,000
(B) Reduce cash and landlord account by 10,000
(C) Create outstanding rent as liability and reduce capital by 10,000
(D) Reduce 10,000 from capital and add 10,000 to loan
Which option is right? Please don’t spam

Answer 1

Answer:

Rent due to landlord amounting to 10000 will :create outstanding rent as liability and reduce capital by 10000