Chart of Accounts Learning T Accounts

Chart of Accounts Learning T Accounts

Chart of Accounts Learning T Accounts

I'm a student and I have a bookkeeping question I have to do a T account the question is If I paid 400 in rent Do I do 2 T accounts 1 for expenses and I'm not sure where the other goes on the chart of accounts.

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Dec 01, 2012
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starstarstarstarstar 		Paying Rent
by: Anonymous

The two accounts affected would be Cash (an asset), and Rent Expense. Therefore you would debit Rent Expense $400, and you would credit Cash $400.

When you are first learning, expenses can be tricky to understand from a posting perspective. Remember paying Rent is an Expense because it was already used to help run your business. There is, sometimes, a Prepaid Rent account. This is an Asset, not an expense, because it will benefit the business in the FUTURE...it hasn't been "used up" yet like a Rent Expense.

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