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)
