Question

how to solve rent owing from trial balance ...means where to show​

Answer 1

Final accounts

Rent owing simply means outstanding rent or rent due but not paid. It is a liability therefore if must be shown on liability side of balance sheet.

Additional Information:

Some adjustments in final accounts are as follows:

1.) Closing stock

• Shown in asset side of balance 5
• Shown on credit side of trading account

2.) Outstanding expense

• Shown on liability side of balance sheet
• Subtracted from related expenses (in P&L A/c or trading A/c)

3.) Prepaid expense

• Have to be subtracted from related expenses.
• Shown on asset side of balance sheet

4.) Accrued income

• Have to be added in related income
• Shown on asset side of balance sheet

5.) Income received in advance

• Subtracted from related income
• Shown on liability side of balance sheet