Journal Entry and Ledger Posting for Rent paid through Bank Account.

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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 Rent payment through Bank Account.

On payment of Rent through Bank Account the  following Ledger Accounts will be affected.

Rent Account shows Debit effect and,

Bank Account shows Credit effect.

Journal Entry

Journal Entry for Rent paid through Bank Account.
Ledger Posting

In Rent Ledger Account

Rent paid through Bank Account - Posting in Rent Ledger Account.

 In Bank Account

Rent paid through Bank Account - Posting in Bank Ledger Account.

Example :

In the Books of M/s.Trimurthy Traders, Rent paid by NEFT Ref No.2356 from Axis Bank Current Account to Mr.Rakesh Das for ₹4000/- on dt.02/07/2021 for the month of June' 2021.

Pass necessary Journal Entry and Post them into their respective Ledger Accounts for Rent paid through Bank Account

In the above example

Debit Ledger is :

  • Rent Account

Credit Ledger is :

  • Axis Bank Current Account

Journal Entry

Journal Entry for Rent paid through Bank Account - Example

Ledger Posting

In Rent Ledger Account

Rent paid through Bank Account - Posting in Rent Ledger Account - Example.

In Axis Bank Current Account

Rent paid through Bank Account - Posting in Bank Account - Example.

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Location: Cuttack, Odisha, India

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