in accounting equation if there is entry rent out standing rs 500 thn how it would b entered in accounting eqation

asked Mar 1, 2014 in Accounting Equation by talhaaslam (6 points) 471 views

1 Answer

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Rent outstanding has two aspects: 1. That an expense of Rs.500 has been incurred on account of rent and 2. That rent has not been paid.  So it will be depicted in Accounting Equation as shown below:

Transaction                     Assets        =      Liabilities         +              Capital

                                                                   Rent O/s                          Capital

Rent outstanding 500                                 =500                                  -500
answered Mar 1, 2014 by jbsclasses (3,971 points)