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Question
Rent paid to landlord should be credited to _________ account.
Rent paid to landlord should be credited to _________ account.
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Solution
The correct option is B Cash
Accounting is based on dual concept. Every transaction give two affects i.e. for every debit there will be a credit.Rent paid to landlord, involves two account i,e. Rent and cash.Rent is an expenses which is a nominal accountCash is a real account.
Following the golden rules, accounting entry will be as under:
Rent A/c Dr. (Debit all expenses and losses) To Cash A/c (Credit what goes out)
Accounting is based on dual concept. Every transaction give two affects i.e. for every debit there will be a credit.
Rent paid to landlord, involves two account i,e. Rent and cash.
Rent is an expenses which is a nominal account
Cash is a real account.
Following the golden rules, accounting entry will be as under:
Rent A/c Dr. (Debit all expenses and losses)
To Cash A/c (Credit what goes out)
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