- This topic has 3 replies, 2 voices, and was last updated 11 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
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/cbut 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.
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.