Question

rent is due to S.Sharma but not yet paid.......jouralise

Answer 1

rent a/c Dr.
to outstanding rent a/c

Answer 2

let Rent outstanding= ×××× ( still due)

The transaction affects Two 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)

Rent outstanding account is a real account( all assets and Liabilities come under Real account; , 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 debited (its an expense; )


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

So the Journal Entry will be..


Rent a/c xxxx

To Rent outstanding a/c xxxx

(Being rent due)


At the time of payment..it will be reversed..


1) Whole payment

Rent outstanding a/c Dr xxxxx

To cash a/c xxxxx

(Being rent paid)



2)part payment

Rent A/c Dr xxxx

To Rent outstanding a/cxxxx

To cash a/c. xxxx


(Being rent paid)