Question

make a journal entry rent paid 3000 but 1000 is still due......its very argent

Answer 1

Rent paid = 3000

Rent outstanding= 1000 ( still due)

The transaction affects three accounts..

Rent account (rent paid) , Rent outstanding account (rent due) , cash account (rent paid by cash)

Rent account is a nominal account (All incomes gains losses expenses come under nominal account; rent paid is an expense)

Cash account and Rent outstanding account are real accounts ( all assets and Liabilities come under Real account; cash is an asset, rent outstanding is liability)

The Three golden rules of accounting are...

Personal account - Debit the receiver ,credit the giver

Nominal account - Debit All expenses and losses, credit All incomes and gains

Real account - Debit what comes in, credit what goes out

in contention with the above rules..

Rent account should be debited (its an expense)

Cash account should be credited (cash is going out)

Rent outstanding should be credited (liability is increasing..i.e., asset is decreasing)

So the Journal Entry will be..

Rent account Dr 4000

To Rent outstanding a/c 1000

To cash a/c 3000

(Being rent paid)