Question

Rent recieved rs.30,000 including advance rent rs.5000

Answer 1

Answer:

Rent received A/c.... Dr

To Advance rent received A/c

Explanation:

Rent received is an income and rent received in advance means income not accrued but received in advance.

At the time of receiving the rent, Rent account has credited

In profit & loss account, amount will be deducted from Rent received account and to be shown as liability.