Make accounting equation of this statement.
Dear Student,
Working notes -
The entry will be -
Prepaid Rent A/c Dr 500
Assets = | Liabilities + | Capital |
(2000) (Cash) | - | ( 1500 ) Cash |
500 (Prepaid Rent) | - |
The entry will be -
Prepaid Rent A/c Dr 500
Rent A/c Dr 1500
To Cash A/c. 2000
Therefore, Pre-paid rent(Rs 500) will be added in assets and cash (Rs 2000) will be subtracted from assets. Also, Rent (Rs 1500) will be subtracted from capital.
Regards
Therefore, Pre-paid rent(Rs 500) will be added in assets and cash (Rs 2000) will be subtracted from assets. Also, Rent (Rs 1500) will be subtracted from capital.
Regards