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Rent due for the month of March will appear _________of the cash book.
- a)On the receipt side
- b)On the payment side
- c)As a Contra Entry
- d)Nowhere
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Rent due for the month of March will appear _________of the cash book....
Explanation:
Rent due for the month of March is an expense for the business. In the cash book, all transactions related to cash and bank are recorded.
- Receipt side: Transactions related to cash received are recorded on the receipt side of the cash book.
- Payment side: Transactions related to cash paid are recorded on the payment side of the cash book.
- Contra Entry: A contra entry is a transaction that involves both cash and bank accounts. For example, when cash is withdrawn from the bank, it is recorded as a debit in the cash book and a credit in the bank account. Similarly, when cash is deposited into the bank, it is recorded as a credit in the cash book and a debit in the bank account.
- Nowhere: Rent due for the month of March does not involve any cash or bank account. It is simply an expense that needs to be paid by the business. Therefore, it will not appear in the cash book.
Conclusion:
In conclusion, rent due for the month of March will not appear in the cash book as it does not involve any cash or bank account. It is simply an expense that needs to be paid by the business.
Rent due for the month of March is an expense for the business. In the cash book, all transactions related to cash and bank are recorded.
- Receipt side: Transactions related to cash received are recorded on the receipt side of the cash book.
- Payment side: Transactions related to cash paid are recorded on the payment side of the cash book.
- Contra Entry: A contra entry is a transaction that involves both cash and bank accounts. For example, when cash is withdrawn from the bank, it is recorded as a debit in the cash book and a credit in the bank account. Similarly, when cash is deposited into the bank, it is recorded as a credit in the cash book and a debit in the bank account.
- Nowhere: Rent due for the month of March does not involve any cash or bank account. It is simply an expense that needs to be paid by the business. Therefore, it will not appear in the cash book.
Conclusion:
In conclusion, rent due for the month of March will not appear in the cash book as it does not involve any cash or bank account. It is simply an expense that needs to be paid by the business.
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Community Answer
Rent due for the month of March will appear _________of the cash book....
Since there is no transaction of cash.
it's entry will be
Rent a/c Dr.
To o/s rent a/c
(being rent due )
it's entry will be
Rent a/c Dr.
To o/s rent a/c
(being rent due )
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