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 à— 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 D. Dr Rent A/c; Cr Mr. Roi
Correct Answer: C
Explanation
In the double entry principle, we debit income and credit expenses. 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)
