accounting question?
accounting question?
I am having problems with double entry and balancing the dr and cr sides. Let's say monthly rent expense is incurred and is not yet paid or recorded. Do I cr rent payable and dr cash? When do I use rent expense? Is this after the month has passed? I am not shure how each t-account affects the opposite side. Any information will be appreciated!
Answers:
Chosen Answer
Kevin M: Credit Rent Payable and Debit Rent Expense. when the rent is paid, you credit cash and debit rent payable. Rent is usually due on the first of the month, and that is when the expense would be accrued, if you really want to do it like that. After doing it this way, you'll notice that your rent payable account has zeroed out, because you've used it for both transactions.
2006-12-17 22:15:15
Kevin M: Credit Rent Payable and Debit Rent Expense. when the rent is paid, you credit cash and debit rent payable. Rent is usually due on the first of the month, and that is when the expense would be accrued, if you really want to do it like that. After doing it this way, you'll notice that your rent payable account has zeroed out, because you've used it for both transactions.
2006-12-17 22:15:15
Craig: You would credit the rent payable account and debit the rent expense account. You can't touch the cash account unless real cash transaction has occured. When the bill is paid, you cr cash and dr rent payable.
2006-12-17 22:25:36
2006-12-17 22:25:36
Sriranjan Bagchi: When Rent is due
Dr.= Rent Expenses
CR = Rent Payable
When Rent is actually paid.
Dr Rent Payable
Cr Cash / Bank
2006-12-17 23:29:38
2006-12-17 23:29:38
William B: You are half correct. you would debit rent expense and credit rent payable. then when you pay the rent it would be a debit to rent payable and a credit to cash.
2006-12-18 14:09:37
2006-12-18 14:09:37