Paid landlord Rs 1,500 for rent. One third of the premises is occupied by the proprietor for his own residence.
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The question is not complete but still i try to explain it.
Explanation:
Rent is an expense of a company and its comes under the nominal account.
According to the rule relating to the nominal account we have to debit all the expenses and loses and credit all incomes and gains.
when a proprietor uses residence for its personal use we transfer it to Drawing account as it is his own personal expense. The balance of drawing account is transferred to owners capital account.
Journal entry
Rent A/c Dr.1000
Drawings A/c Dr.500
To cash A/c 1500
One third of the total rent is transferred to the drawing account as it is used by the proprietor for his personal use .
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