Journal Entry and Ledger posting for Cash payment towards Rent.

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

Journal Entry for Cash payment towards Rent.

Ledger Posting

In Rent Ledger Account.

Rent paid through Cash - Posting in Rent Ledger Account

In Cash Ledger Account.

Rent paid through Cash - Posting in Cash Account.
Example :

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

Journal Entry for Cash payment towards Rent - Example.

Ledger Posting

In Rent Ledger Account.

Rent paid through Cash - Posting in Rent Ledger Account - Example

In Cash Account

Rent paid through Cash - Posting in Cash Account - Example
Location: Cuttack, Odisha, India

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