Discover a wealth of knowledge and get your questions answered on IDNLearn.com. Join our interactive community and access reliable, detailed answers from experienced professionals across a variety of topics.

What is the accounting rule for Rent payable? Does it have credit or debit balance?

Sagot :

Answer:

credit

Explanation:

Rent expense (and any other expense) will reduce a company's owner's equity (or stockholders' equity). Owner's equity which is on the right side of the accounting equation is expected to have a credit balance. Therefore, to reduce the credit balance, the expense accounts will require debit entries.