A rent of 250,000 naira was paid by John to his landlord by cheque. The double entry in John’s books is ____
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Correct Answer: Option A
Explanation:
In accounting, rent paid is an expense. When John pays rent by cheque, it means the payment is made from his bank account.
Here’s the double entry in John’s books:
- Debit Rent Account (Expense increases on the debit side)
- Credit Bank Account (Asset decreases on the credit side)
This reflects that John incurred a rent expense and paid it using bank funds.
In accounting, rent paid is an expense. When John pays rent by cheque, it means the payment is made from his bank account.
Here’s the double entry in John’s books:
- Debit Rent Account (Expense increases on the debit side)
- Credit Bank Account (Asset decreases on the credit side)
This reflects that John incurred a rent expense and paid it using bank funds.