102k views
3 votes
​________ represents a debt owed for renting a building.A.Rent PayableB.Rent ExpenseC.Rent RevenueD.Prepaid Rent

1 Answer

3 votes

Answer:

A. Rent Payable

Step-by-step explanation:

Rent Payable refers to an expense which is certain and is to be paid in future. It represents a debt in the sense that it is an obligation which is required to be met in the near future.

The journal entry for rent payable is recorded as follows,

Rent A/C Dr.

To Rent Payable A/C

(Being rent payable recorded)

Rent Payable A/C is a liability while rent is an expense. Expenses are debited and liabilities are credited so as to recognize them.

User Drakkin
by
3.1k points