Double entry

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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February 14, 2018 at 8:31 am #437069
suleymanabuzerli
Member
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what transaction is represented by the entries : debit rent,credit landlord?
my answer:
The payment of rent by the business
but l cannot understand what the word “landlord” means (eg income ,assets,liability decrease or increase??)
correct??
February 14, 2018 at 9:42 am #437108
John Moffat
Keymaster
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Landlord is the person to whom we owe the money – he is a payable (i.e. liability).
So the entry is not for the payment of rent (if it had been paid then we would credit cash), it is the entry when the bill for the rent is received.
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