rent is due to a mukherjee but not yet paid
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The Current transaction affects two accounts Rent account(it is a nominal account;all losses Gains income expenses come under nominal account; Rent is an expense),, Rent payable account.. because payment of rent is due but not yet paid .(it is a Real account; all assets and Liabilities come under Real account; Rent payable is a 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 (it is a nominal account/its an expense)
Rent payable account should be credited (it is a Real account/liability is increasing/asset is going to be reduced)
The Journal Entry will be....
Rent a/c Dr xxxxx
To Rent Payable a/c. xxxx
(Being payment of rent due )
if the actual payment is made... then the entry will be....
Rent payable account Dr
To cash/Bank a/c
(Being rent paid)
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 (it is a nominal account/its an expense)
Rent payable account should be credited (it is a Real account/liability is increasing/asset is going to be reduced)
The Journal Entry will be....
Rent a/c Dr xxxxx
To Rent Payable a/c. xxxx
(Being payment of rent due )
if the actual payment is made... then the entry will be....
Rent payable account Dr
To cash/Bank a/c
(Being rent paid)
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