Question

Journal entry for Paid household rent rs 7500

Answer 1

Answer:

Case -1

We will not record that transaction in our Books of accounts because those are not related to business, they are owners personal transactions.

(Business entity concept)

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Case -2

If that rent is paid with cash of business then entry is

Drawings A/c                                Dr       7500

    to Cash A/c                                                                        7500

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