Question

Rent paid on behalf of jassi in ledger

Answer 1

The transaction affects Two accounts..

Rent account (rent paid) , Bank/cash account (rent paid by Cheque)

Rent account is a nominal account (All incomes gains losses expenses come under nominal account)

Bank/Cash account is a real account( all assets and Liabilities come under Real account; Bank Balance/cash balance is an asset)

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)

Bank/cash ccount should be credited (cash in bank /cash balance is going out


So the Journal Entry will be..

Rent account Dr ××××


To Cash/Bank a/c ××××

(Being rent paid)