Show how the following transaction will be recorded applying the double entry princi ple: Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July, 20 × 7 by cheque.

Show how the following transaction will be recorded applying the double entry principle:
Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July, 20 × 7 by cheque.

A

Dr Rent A/c; Dr Bank A/c

B

Dr Bank A/c; Cr Rent A/c

C

Dr Rent A/c; Cr Bank A/c

DDr Rent A/c; Cr Mr. Roi

Answer is C

In the double entry principle, income and credit expenses are debited. In the question, rent account will be debited with the sum of #500,000 (money has come in as rent, e.i income),and credit bank account. (money has gone out of mr Rio bank account via the cheque that was issued)

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