AccountingBLOCK - Accounting Forums

This is a double entry accounting question about monthly rent expense... Let's say monthly rent expense is incurred and is not yet paid or recorded.

Do I credit rent payable and debit cash? When do I use rent expense? Is this after the month has passed? I am not shure how each t-account affects the opposite side. Any information will be appreciated!

You would credit the rent payable account and debit the rent expense account. You can't touch the cash account unless real cash transaction has occured. When the bill is paid, you cr cash and dr rent payable.

Credit Rent Payable and Debit Rent Expense. when the rent is paid, you credit cash and debit rent payable. Rent is usually due on the first of the month, and that is when the expense would be accrued, if you really want to do it like that. After doing it this way, you'll notice that your rent payable account has zeroed out, because you've used it for both transactions.