Question

which account is Debited in the followng statement answer both :-
(a)rent paid
_
(b)purchased goods from nitin​

Answer 1

Explanation:

When ram has been debited for rent paid to landlord, this is an error of posting to the wrong account.

This is when posting is made to a wrong account but on the correct side. This error will not affect the agreement of the trial balance.

This is because even though the entry is passed to the wrong account, but the accounting treatment is correct i.e., the correct entry for this transaction should be -

Rent A/c Dr

To cash A/c

Instead of this the incorrect entry passed was

Ram A/c Dr

To Cash A/c

Here instead of rent account , ram's account is debited. This does not affects the agreement of the trial balance.

Rent being revenue expenditure is deducted from the current year profit, ram's account being personal account is not included in the profit and loss account. This affects the actual profit of the year.