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Hallo,
How do I know when an example says we have a rental a/c, if it is about rental expense or rental income?
If I assume this is a rental expense, and if we have a trial balance which has more credits than debits, because the rental expense has been omitted, e.g. $100, to correct this the entries will be:
Suspense a/c
Dr Opening balance 100 (as debits are less than credits)
Cr 0Rental a/c
Dr 100 (as it is)
Cr Suspense a/c 100=> Suspense a/c
Dr Op. bal. 100
Cr Rental a/c 100
– the suspense a/c is now 0 and is there a specific entry with which to transfer $100 to the trial balance?Also, if it is rental income the entries will be the opposite, there will be less credit than debit in the trial balance, we will credit the rental income a/c and debit the suspense a/c?
Thank you!
The entries are correct as you have typed them.
There is no entry to transfer to the trial balance – the trial balance is simply a list of the balances and now that rental A/c has been corrected it will now balance.Yes – if rental income then the opposite.
Hallo,
Does rental a/c, when mentioned on it’s own, should be understood as rental expense?
Something similar to the accruals, mentioned on its own.
Thank you!
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