Journal Entry for Rent Expenses

Journal Entry for Rent Expenses

Rent is a common operating expense. Journal entry for rent shall be recorded as under. The rent shall be debited and other aspect cash/bank/rent payable as case may be shall be credited.

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Rent		xxx
01-01-2017	Cash/Bank			xxx

There are three possible ways in which rent transaction may occur

1.    Rent paid in cash.

2.    Rent paid through Bank.

3.    Rent shall be paid in future.

We know that an increase in rent is debited, thus rent shall be debited in each of above cases and other aspect is credit under the dual concept of accounting.

Journal Entry for Rent paid in Cash

Journal entry for rent paid in cash shall be recorded by debiting the rent being increase in expense and crediting the cash being decrease in asset.

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Rent		xxx
01-01-2017	Cash			xxx

Journal Entry for Rent paid through bank

Journal entry for rent paid through bank shall be recorded by debiting the Rent being an increase in expense and crediting the bank being decrease in asset.

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Rent		xxx
01-01-2017	Cash			xxx

Journal Entry for Rent payable

Journal entry for rent payable shall be recorded by debiting the Rent being increase in expense and crediting the rent payable.

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Rent		xxx
01-01-2017	Rent payable			xxx