Question

Total rent paid this year Rs.40,000, @ Rs.3,000 per month.

Answer 1

At the time of paying rent : Rent A/C.  Dr.  Rs.40,000    To Cash A/C. Or Bank A/C.  Rs.40,000 (Being rent paid) At the year end , in the P&L  P&L A/C.  Dr. Rs.40,000     To Rent A/C.  Rs.40,000 (Rent paid Posted to P&L) Prepaid Rent A/C. Dr.   Rs. 4000     To Rent A/C.  Rs.4000 (Being Rs.4000 relating to the next FY, paid this year treated as an Asset)

Answer 2

Rent A/c.     Dr.        40000

   To Cash A/c.                       40000

(Being rent paid)