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Cash paid $2000 on building rent which was due last month. What is accounting entry?

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Question added by Wasim khan wazir , Finance Specialist , Mott Macdonald
Date Posted: 2015/11/15
Deleted user
by Deleted user

Following Accrual Concept:: The entry for the due rent of the previous month would be as

 

Building Rent Expense            $ Dr.

Building Rent Payable                        $ Cr.

 

And now it is now being paid so the entry would be,

 

Building Rent Payable                        $ Dr.

        Cash                                                          $ Cr.

 

 

Asim Iqbal
by Asim Iqbal , Associate Director , KPMG

Dr. Accrued Liability

     Cr. Cash

veeresham pogaku
by veeresham pogaku , Costing and MIS Officer / Accountant , CGM Group

1) Entry for rend due (This entry has to pass at the end of the  last month):

Rent A/C Dr                                                                                           $

    To Building Rent Payable (Current Liability) A/c Cr.                                     $

(Being rent payable for ......(last) Month)

 

 2) At the time of rent Paying (This month):

 

  Building Rent Payable (Current Liability ) A/c Dr                              $

                   To, Cash (Current Asset ) A/c Cr.                                                  $

(Being Rent paid for .......(Last) Month)

Subash Thomas
by Subash Thomas , Manager- Internal Audit. , Confidential Company

Entry at the end of last month when the rent became due:

Rent A/c                                              Dr.  $2,

To Rent Payable A/c                                                     $2,

Being rent on building due for the month.

 

On payment of cash $2,/-

 

Rent Payable A/c       Dr. $2,

To Cash                                            $2,

Being cash paid. 

Mubashir Ali
by Mubashir Ali , Associate Business Analyst , Primatics Financial LLC

Dr. Rent Payable

     Cr. Cash

 

The reason of this being, you must have already booked Rent Expense by debiting Rent Expense and Crediting Payable Account (creating a liability). So now you are eliminating your liability by paying you Rent in cash.

 

Thanks.

Ali Ejaz Butt
by Ali Ejaz Butt , Sr. Accountant , Leather Safety Auto Cushions Indsutries

Rent payable Dr.

 

Cash cr.

احمد عبد الهادي
by احمد عبد الهادي , محاسب مالي متقدم , الصخر لمقاولات البناء

from

Accrued Expense.

to 

cash

Muhammad Aamir Ayaz
by Muhammad Aamir Ayaz , Internee , Dawood Lawrencepur Limited

Building Rent     Dr

     Cash                    Cr

Abdul Waheed Khan
by Abdul Waheed Khan , Accountant , Hotel Raj International

But before u had to pass this entry for rend due $/-

Rent A/C Dr $/-

  To Building Rent Payable (Current Liability) A/c Cr. $/-

 

 

Building Rent Payable (Current Liability ) A/c Dr. $/-

  To, Cash (Current Asset ) A/c Cr.$/-

 

Mark Angelo Damuag
by Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

Rent Payable    2,.

           Cash                    2,.

#to pay rental expense last month

Khubi Chandra Poudel
by Khubi Chandra Poudel , Senior Auditor , Kaid Auditing Co.

Since the rent payable was accrued in last month,so assuming the Rent expense has already been booked in last month by passing Rent Expense dr 

                                                          To Rent payable

Now while making the cash payment for the rent following entry shall be passed

                                                      Rent Payable Dr.  $

                                                            To cash in hand     $

 

 

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