Rent is a amount of consideration paid by the User of any property such as Land, Land and Building, Vehicle, Machinery etc to Owner of the property within a fixed interval of time.
Let's discuss about the Journal Entry and Ledger Posting procedure for Cash payment towards Rent.
On Cash payment towards Rent the following Ledger Accounts will be affected.
Rent Account shows Debit effect and,
Cash Account shows Credit effect.
Journal Entry
Ledger Posting
In Rent Ledger Account.
In the Books of M/s.Trimurthy Traders, Rent paid by Cash to Mr.Rakesh Das for ₹4000/- on dt.02/05/2021 for the month of April' 2021.
Pass necessary Journal Entry and Post them into their respective Ledger Accounts for Rent paid through Cash
In the above example
Debit Ledger is :
- Rent Account
Credit Ledger is :
- Cash Account
Journal Entry
Ledger Posting
In Rent Ledger Account.
In Cash Account
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