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Question
The rent paid to land lord is to be credited to ___________.
The rent paid to land lord is to be credited to ___________.
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Solution
The correct option is C Cash account
All expense and income accounts are classified as nominal account. Rule for nominal account describe that all expense and losses should be debited and all incomes and gains should be credited.
Payment of rent to landlord is an expense which need to be debited to rent account by crediting cash account.
Accounting entry will be as under:
Rent A/c Dr. (Nominal A/c- debit all the expense) To Cash A/c (Real A/c- credit what goes out)
All expense and income accounts are classified as nominal account. Rule for nominal account describe that all expense and losses should be debited and all incomes and gains should be credited.
Payment of rent to landlord is an expense which need to be debited to rent account by crediting cash account.
Accounting entry will be as under:
Rent A/c Dr. (Nominal A/c- debit all the expense)
To Cash A/c (Real A/c- credit what goes out)
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