The rent paid to landlord is credited to:

a)
Cash Account

b)
Rent Account

c)
Landlord`s Account

d)
None of these

Correct answer is option 'C'. Can you explain this answer?

Question

The rent paid to landlord is credited to:a)Cash Accountb)Rent Accountc)Landlord`s Accountd)None of theseCorrect answer is option 'C'. Can you explain this answer?

Answer

Landlord`s Account

In double-entry accounting, payments for expenses are typically recorded by debiting the expense account and crediting the cash account. However, if the payment is made to a specific individual or organization, it is generally credited to their account.

In this case, the rent paid to the landlord is an expense for Sunset Tours. To record the payment, Sunset Tours would debit the rent expense account and credit the cash account to reduce the amount of cash on hand. However, since the payment is made to the landlord, it would also be credited to the landlord's account to reduce the amount owed.

The journal entry would be:

Rent Expense (Debit) Cash (Credit) Landlord (Credit)

Options B, C, and D are incorrect because they do not accurately reflect the transaction. The rent account is an expense account and would be debited, not credited. The cash account would be credited to reduce the amount of cash on hand, but it would not be credited to the landlord's account. The transaction does not involve any of the other options listed.

It is important to understand the rules for recording transactions in order to accurately prepare financial statements and effectively manage a business.

Answer

Rent Paid to Landlord

When a business pays rent to its landlord, the transaction is recorded in the following way:

1. Debit the Rent Account
- The Rent Account is an expense account and represents the cost of renting the premises for the business.
- When the rent is paid, the Rent Account is debited to increase the expense.

2. Credit the Landlord's Account
- The Landlord's Account is a liability account and represents the amount owed to the landlord for rent.
- When the rent is paid, the Landlord's Account is credited to reduce the liability.

3. Credit the Cash Account
- The Cash Account is an asset account and represents the cash or bank balance of the business.
- When the rent is paid, the Cash Account is credited to reflect the decrease in cash.

Therefore, the rent paid to the landlord is credited to the Landlord's Account.

Answer

Th journal entry would be:- Rent A|c Dr To Cash A|c hence cash account is credited

Answer

Landlord`s Account

In double-entry accounting, payments for expenses are typically recorded by debiting the expense account and crediting the cash account. However, if the payment is made to a specific individual or organization, it is generally credited to their account.

In this case, the rent paid to the landlord is an expense for Sunset Tours. To record the payment, Sunset Tours would debit the rent expense account and credit the cash account to reduce the amount of cash on hand. However, since the payment is made to the landlord, it would also be credited to the landlord's account to reduce the amount owed.

The journal entry would be:

Rent Expense (Debit) Cash (Credit) Landlord (Credit)

Options B, C, and D are incorrect because they do not accurately reflect the transaction. The rent account is an expense account and would be debited, not credited. The cash account would be credited to reduce the amount of cash on hand, but it would not be credited to the landlord's account. The transaction does not involve any of the other options listed.

It is important to understand the rules for recording transactions in order to accurately prepare financial statements and effectively manage a business.

Answer

A

Answer

C) cash account

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