A business pays office rent by cheque. Which account is debited?
Correct answer: B. Rent account
- A. Bank account
- B. Rent account
- C. Cash account
- D. Capital account
Explanation
Rent is an expense incurred by the business, so the rent account is debited. The bank account is credited because money leaves the bank.
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About Double Entry and Books of Prime Entry
Double entry records every transaction with equal debit and credit entries, based on the accounting equation and the classification of assets, liabilities, capital, income and expenses. Books of prime entry include the sales, purchases, returns and cash books, journal, and source documents used before transactions are posted to ledger accounts.
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