Show how the following transaction will be recorded applying the double entry principle:
Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July, 20 à— 7 by cheque.
Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July, 20 à— 7 by cheque.
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Correct Answer: Option C
Explanation:
In the double entry principle, we debit income and credit expenses. Rent account will be debited with the sum of #500,000 (money has come in as rent, e.i income),and credit bank account. (money has gone out of mr Rio bank account via the cheque that was issued)
In the double entry principle, we debit income and credit expenses. Rent account will be debited with the sum of #500,000 (money has come in as rent, e.i income),and credit bank account. (money has gone out of mr Rio bank account via the cheque that was issued)