Question

i want answer of this in accounting equation....paid rent in advance rs500

Answer 1

In journal entry :-

Prepaid rent A/C Dr. 500

To Cash A/C 500

(Being rent paid in advance)

Answer 2

paid rent in advance. And rent is in the form of cash.. It means that cash is goes out from the business and in the form of rent...But this rent is paid in the form advance cash it means it is a asset and assets nature is debit.. Hence rent paid in advance is debited and paid in the form of cash i e rent.. So

Thus the journel entry will be - -

Prepaid Rent a/c dr. 500

To rent a/c 500

( being rent goes out from business in the form of cash in advance )

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