Payer: debit prepaid rent and credit cash. Remember the accrual basis of accounting. After using rent for one month. Then the payer debits rent expense and credits prepaid rent.
Prepaid rent A/c Dr To, Rent A/C
Yes, prepaid rent is accrued.
prepaid rent a/c dr to rent a/c
[Debit] Prepaid Rent xxxx [Credit] Cash / bank xxxx
Payer: debit prepaid rent and credit cash. Remember the accrual basis of accounting. After using rent for one month. Then the payer debits rent expense and credits prepaid rent.
Prepaid rent A/c Dr To, Rent A/C
Yes, prepaid rent is accrued.
prepaid rent a/c dr to rent a/c
Prepaid Rent is a Current-Asset account. Since it deals with "prepaid" it will expire on a regular basis and is not a "fixed" asset. Each month (or whatever terms the rent may be paid) the amount is removed from Prepaid-Rent and placed in Rent Expense.
[Debit] Prepaid Rent xxxx [Credit] Cash / bank xxxx
Prepaid rent is when you pay your rent ahead for a length of time, either as a deposit or as regular rent. Sometimes you can get a discount based on how much rent you pay ahead.
1. [Debit] Prepaid Rent xxxx [Credit] Cash xxxx
Prepaid rent is a rent paid in advance so it is current asset and it will have debit balance as normal balance.
Prepaid rent is an asset and represents and advance payment for a future benefit Rent expense is an expense and is the expended portion of the rent consumed.
If you are the payer Increase in Prepaid Expenditure- Asset Decrease in Bank - Asset Equity= Asset- Liabilities 0 = +/- - 0 If you are the payee Increase in Income Recieved in Advance - Liability Increase in Bank - Asset Equity= Asset- Liabilities 0 = + - +
The Accounting Equation is Assets=Liabilities + Owner's Equity?