Question

How much amount as Rent A/c will be debited to income & Expenditure A/c ?

• A. Rent Paid (-) Outstanding Rent Of current year (+) Outstanding Rent of last year
• B. Rent Paid (+) Outstanding Rent Of current year (+) Outstanding Rent of last year
• C. Rent Paid (-) Outstanding Rent Of current year (-) Outstanding Rent of last year
• D. Rent Paid (+) Outstanding Rent Of current year (-) Outstanding Rent of last year

Answer 1

The correct option is D Rent Paid (+) Outstanding Rent Of current year (-) Outstanding Rent of last year

Rent a/c records the various entries regarding rent like advance payment, outstanding rent.

When rent a/c is to be prepared the outstanding rent for current year has to be added because it has to be paid next year and outstanding rent for previous year has to be in current year.

$Rentpaid(+)Outstandingrentforcurrentyear(-)Outstandingrentforpreviousyear$.