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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › rent receivable and suspense a/c
Hallo,
If rent receivable a/c balance is omitted from a trial balance and we want to use suspense a/c to correct this, I would write the entries as:
Dr Rent receivable
Cr Suspense a/c
but seems like the right answer is:
Dr Suspense a/c
Cr Rent receivable
– why don’t we debit rent receivable, but we have to credit it? I would treat rent receivable as a receivables a/c, but this time it’s not for sales, but for rent.
Thank you!
It is a trick of English language I am afraid – rent receivable means income and therefore is a credit balance.
Thank you!
You are welcome 🙂