Question

a business receives 5000 for rent and deposits this amount into its bank account. how will this transaction be recorded?​

Answer 1

Dr bank 5,000

Cr rent revenue 5,000

Deposit

Step-by-step explanation:

It is noteworthy that the rent received is rent revenue not rent expense , going by the fact that the giving account should be credited while the receiving account is debited, the bank account being the receiving account since cash was received from the rent account would be debited while the rent revenue account would be credited as the giving account.

In another way, rent account is a revenue account, an increase in revenue should be credited while the bank account being an asset account an increase in the asset should be debited.