What will be the entry for "Paid rent to landlord, Amit"? Please explain too.
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Answer:
Rent a/c. Dr.
To Cash a/c
Explanation:
three three accounts are involved in this statement -- rent , Amit and cash.
rent is a nominal account and an expense to the business hence it will be debited.
cash is a real account and is going out to the business hence it will be credited.
Amit is a personal account. He is both giver and receiver ( giver for the place to live for where you are paying the rent and receiver for rent ) , hence, he will be included in the narration.
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