On which side the decrease in the following accounts will be recorded? Also mention the nature of account:−

1. Cash 4. Outstanding Rent

2. Bank Overdraft 5. Prepaid Insurance

3. Rent Paid 6. Manoj, Proprietor of the business

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Solution

Accounts Decrease Recorded at Side Nature

1. Cash Credit Asset

2. Bank Overdraft Debit Liability

3. Rent Paid Credit Expense

4. Outstanding Rent Debit Liability

5. Prepaid Insurance Credit Asset

6. Manoj, Proprietor of the business Debit Capital

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Similar questions

Q. On which side will the decrease in the following accounts be recorded? Also, state the nature of the account:

(i) Cash	(ii) Bank Overdraft
(iii) Outstanding Salary paid	(iv) Outstanding Rent
(v) Prepaid Insurance	(vi) Mohan, Proprietor of the business

Q. On which side will the increase in the following accounts be recorded? Also mention the nature of account:

1.	Furniture	5.	Proprietor's Account
2.	Wages paid	6.	Debtor
3.	Rent Received	7.	Prepaid Insurance
4.	Cash	8.	Outstanding Salary

Q. On which side the increase in the following accounts will be recorded? Also mention the nature of account:−

1. Furniture	5. Proprietor's Account
2. Rent Paid	6. Debtor
3. Commission Received	7. Creditor
4. Salary Paid

State whether the following statements are True or False.

1) Prepaid insurance is nominal account.
2) Personal transactions of proprietor are recorded in the books of account of business.
3) Every debit has equal and corresponding credit.
4) Loan account is personal account.
5) Drawing account is a real account.
6) Commission received is a nominal account.
7) Outstanding wages is a nominal account.
8) Bank of India is an example of real account.
9) An order placed for the goods, entry is passed/recorded in the book of account.
10 Every transaction has only on effect

Q. What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 18,000
(ii) Purchased goods for Cash ₹ 5,000 and on credit ₹ 2,000
(iii) Sold goods for cash ₹ 4,000 (costing ₹ 2,400)
(iv) Rent paid ₹ 1,000 and rent outstanding ₹ 200

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1.	Cash	4.	Outstanding Rent
2.	Bank Overdraft	5.	Prepaid Insurance
3.	Rent Paid	6.	Manoj, Proprietor of the business

Accounts	Decrease Recorded at Side	Nature
1. Cash	Credit	Asset
2. Bank Overdraft	Debit	Liability
3. Rent Paid	Credit	Expense
4. Outstanding Rent	Debit	Liability
5. Prepaid Insurance	Credit	Asset
6. Manoj, Proprietor of the business	Debit	Capital

On which side the decrease in the following accounts will be recorded? Also mention the nature of account:− 1. Cash 4. Outstanding Rent 2. Bank Overdraft 5. Prepaid Insurance 3. Rent Paid 6. Manoj, Proprietor of the business

Accounts Decrease Recorded at Side Nature 1. Cash Credit Asset 2. Bank Overdraft Debit Liability 3. Rent Paid Credit Expense 4. Outstanding Rent Debit Liability 5. Prepaid Insurance Credit Asset 6. Manoj, Proprietor of the business Debit Capital

On which side the decrease in the following accounts will be recorded? Also mention the nature of account:−

1. Cash 4. Outstanding Rent

2. Bank Overdraft 5. Prepaid Insurance

3. Rent Paid 6. Manoj, Proprietor of the business

Accounts Decrease Recorded at Side Nature

1. Cash Credit Asset

2. Bank Overdraft Debit Liability

3. Rent Paid Credit Expense

4. Outstanding Rent Debit Liability

5. Prepaid Insurance Credit Asset

6. Manoj, Proprietor of the business Debit Capital