Question { IBM, 23321 }

Rent paid rs 2000 in Jan and feb 2009. What will the entry
in Feb 1st 2009.

Answer

I have taken the rent amt. of Rs. 2000 p.m.

Rent A/c ... Dr. 2000
To Advance Rent 2000
(Being jan. advance rent has been adjusted)

Advance Rent A/c...Dr. 2000
To Cash/Bank A/c 2000
(Being advance rent paid for the month of feb.)

It means that we have already paid the jan. rent in advance in jan, and in feb.1 we have to adjust with rent.
In feb.1 we have paid the advance rent for the month of feb.