Journal Entry for Payment of Rent to Hari Sankar's Residence

There are two accounts that are affected by the payment of rent to Hari Sankar's residence, which are:

1. Rent Expense account
2. Cash/Bank account

Explanation:

When a rent payment is made to Hari Sankar's residence, the following journal entry is recorded:

Date: Date of payment

Account Credited: Rent Expense account

Account Debited: Cash/Bank account

Amount Credited: Total amount paid as rent

Amount Debited: Total amount paid as rent

Explanation:

Rent Expense account is a nominal account, which means it is an expense account and is debited when rent is paid. Cash/Bank account is a real account, which means it is an asset account and is credited when cash/bank is paid.

When rent is paid to Hari Sankar's residence, the Rent Expense account is debited and the Cash/Bank account is credited for the same amount. This means that the total amount paid as rent is recorded as an expense in the Rent Expense account and as an asset in the Cash/Bank account.

Conclusion:

The journal entry for the payment of rent to Hari Sankar's residence is made by debiting the Rent Expense account and crediting the Cash/Bank account for the same amount. This entry records the payment of rent as an expense in the Rent Expense account and as an asset in the Cash/Bank account.

Journal Entry :

Drawings A/C      Dr    Rs.500

       To  Cash A/C       Rs.500

(Being Rent  paid of Hari Shankar residence)

Explanation:

According to the business entity concept, personal transactions should not be clubbed with business transactions. Therefore , rent paid for the propreitor is a personal expense . It is drawings and hence debited.
Accoording to the Real Account Principle,
Debit what comes into the business
Credit what goes out of the business
So, here cash Account is a real account, and cash balance is decreaing. Hence, credited.