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The rent paid to landlord is credited to:
- a)Landlord`s Account
- b)Rent Account
- c)Cash Account
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The rent paid to landlord is credited to:a)Landlord`s Accountb)Rent Ac...
Explanation:
When a business pays rent to a landlord, it is a cash transaction. The cash paid to the landlord is recorded in the cash account as a credit as it is an outgoing payment for the business. This transaction is recorded in the Accounting Equation as follows:
Assets (Cash) = Liabilities (None) + Equity (Owner's Capital)
Therefore, the rent paid to the landlord is credited to the cash account. The other accounts that are affected by this transaction are:
1. Landlord's Account: This account is not affected by the payment of rent. The landlord's account is used to record the amount of rent owed by the business to the landlord.
2. Rent Account: This account is used to record the rent received by the landlord. The payment of rent by the business does not affect this account.
In conclusion, the rent paid to landlord is credited to the Cash Account.
When a business pays rent to a landlord, it is a cash transaction. The cash paid to the landlord is recorded in the cash account as a credit as it is an outgoing payment for the business. This transaction is recorded in the Accounting Equation as follows:
Assets (Cash) = Liabilities (None) + Equity (Owner's Capital)
Therefore, the rent paid to the landlord is credited to the cash account. The other accounts that are affected by this transaction are:
1. Landlord's Account: This account is not affected by the payment of rent. The landlord's account is used to record the amount of rent owed by the business to the landlord.
2. Rent Account: This account is used to record the rent received by the landlord. The payment of rent by the business does not affect this account.
In conclusion, the rent paid to landlord is credited to the Cash Account.
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The rent paid to landlord is credited to:a)Landlord`s Accountb)Rent Ac...
Rule for nominal account describe that all expense and losses should be debited and all incomes and gains should be credited. Payment of rent to landlord is an expense which need to be debited to rent account by crediting cash account.
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The rent paid to landlord is credited to:a)Landlord`s Accountb)Rent Accountc)Cash Accountd)None of theseCorrect answer is option 'C'. Can you explain this answer?
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