Question

Rent is 4000 and is payable 400 Rs per month. Whwt is its adjustment entry

Answer 1

Answer:

Rent account dr. 4800

To cash account. 4000

To rent outstanding account. 800

Explain

Per month rent is 400 it means total rent is in 1 year 400×12=4800 and rent is given 4000 in question means 4000 is paid and 800 is remaining then it will be transfered in outstanding account