Question

Rent Rs.3000 is paid with advance Rs.2000 Assets and Liabilities

Answer 1

subtract 2000 from cash

subtract 2000 from cash add to 2000 to prepaid rent

subtract 2000 from cash add to 2000 to prepaid rent Explanation:

subtract 2000 from cash add to 2000 to prepaid rent Explanation:no changes in liabilities side .draw a column for prepaid rent on assets side