Question

State the closing entries for rent paid to partners.

Answer 1

Rent paid is an indirect expense and will be going in Debit side of Profit and Loss account at the end of financial year.

Means the entry will be-

Profit and Loss account Dr.

To Rent account

Hope it helps you....

Answer 2

Answer:

Answer describe below:

Explanation:

Rent paid to partner like interest on loan by partner, is a charge against profit and not an appropriation of profit. It is a charge on profit because rent in paid to a partner for using his or her personal property for business. It is debited to Profit and loss account a (not to the profit and loss appropriation account) and credited to rent payable account.

Journal Entries for Rent paid to Partners is :

P/L A/c    Dr.

 To Rent A/c

(Being rent paid)

#SPJ3