what will be entry of rent outstanding in admission of partners revaluation account wether this entry will be on credit side or debit ?

asked Apr 16, 2015 in Partnership-Admission by aslam (107 points) 3,858 views

1 Answer

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In normal circumstances entry for rent outstanding is:

Rent A/c               Dr.

  To Rent Outstanding A/c

At the time of admission, if there is rent outstanding, then entry will be done through the Revalation A/c.  It is a recognition of an expense and a liability at the same time.  Here instead of debiting Rent A/c, we will debit Revaluation A/c.  Journal entry will be:

Revaluation A/c    Dr.

  To Rent Outstanding A/c

answered Apr 16, 2015 by jbsclasses (3,971 points)