journal entry of rent due but not received
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rent a/c dr
to rent accrued a/c
(being rent due)
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Introductions:
Rent reduces the owner's equity (or shareholders' equity) of a corporation. Owner's equity is expected to have a credit balance on the right side of the accounting equation. As a result, debit entries in the spending accounts will be necessary to reduce the credit amount.
Explanation:
Rent due is a liability which occurs when a company has kept, occupied, or benefitted from rented property during an accounting period and the rental payment is still owed at the conclusion of the period.
The journal entry would be:
Rent a/c dr
To rent accrued a/c
(being rent due)
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