Question

Payment of rent is debited to cash A/c.

• A. True
• B. False

Answer 1

The correct option is B False

Rent paid is an expense. Thus, it is a nominal account. The rule for the nominal account is debit all expenses and losses and credit all incomes and gains. So, we debit the Rent A/c.

Cash is a real account. The rule for Real account is debit what comes in and credit what goes out. Thus, cash is going out and so will be credited.

Therefore, payment of rent will be credited to Cash account.

The correct option is B.