- March 6, 2020 at 2:33 pm #564574Mathew.patMember
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What would be the double entry for rent in advance of 323040? The rent account will be credited with the amount what would be the debit side
Same for the arrears of 11520. If rent account would be debited with 11520, then where would the credit goMarch 6, 2020 at 4:04 pm #564622John MoffatKeymaster
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The rent account is credited with the total cash received of $2,003,040.
At the start of the year tenants had overpaid $323,040 and so this would be a credit balance at the start of the year. Also at the start of the year tenants were in arrears of $11,520 and so this would be a debit balance at the start of the year.
Both of these balances will have been brought forward from the previous year as normal.
Although it is useful to understand the double entries (and I assume that you have watched all of my free lectures) appreciate that this is a financial accounting exam and not a double entry bookkeeping exam. There is very little testing of double entry and so it is usually much faster (which is important because there is a lot of time pressure in the exam) to sort out answers in the way that the test answer does 🙂
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