Question

journalise the following transaction paid office rent by cheque​

Answer 1

Answer:

Explanation:

Rent A/c …………..Dr.

To Bank A/c

Being rent paid by cheque.

Now the question is why rent debited and Bank credited……

According to modern approach Rent acc. is nominal account….and Bank account is sometimes real or sometimes personal account …….but now Bank account is personal account ……

Use the formula …..nominal account

Total loss and expenses are debit and total gains and incomes are credit

So rent account is debited because rent is expenses

Now , personal account use in this formula

Debit the receivers and credit the giver.

…..so Bank account is credit because Bank issue cheque on rent paid.