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    Prepaid rent journal entry

    Asked Dec 11, 2009, 02:07 AM 8 Answers
    What is journal entry of
    Prepaid rent

    Last edited by CliffARobinson; Jan 30, 2012 at 12:21 PM.
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    8 Answers
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Jan 1, 2010, 12:36 PM

    Debit Prepaid Rent for the amount
    Credit Cash for the amount paid.

    As the rent is used during the period the journal entry is:
    Debit Rent Expense for the amount used
    Credit Prepaid Rent for the amount
    manish684001's Avatar
    manish684001 Posts: 1, Reputation: 1
    New Member

    Sep 12, 2011, 11:36 AM
    Prepaid rent a/c dr
    To cash a/c
    AnandTorres's Avatar
    AnandTorres Posts: 1, Reputation: 1
    New Member

    Dec 20, 2011, 03:42 PM
    Prepaid Rent Account (Or Rent paid in Advance) A/C DR
    To Cash A/C

    For the first accrual...

    While settling in de cash, the entry will be

    Rent A/C DR
    To Prepaid Rent account

    (Net off entry)

    Normal Entry would be

    Rent A/C DR
    To Cash
    sudhakarp's Avatar
    sudhakarp Posts: 1, Reputation: 1
    New Member

    Dec 27, 2011, 06:03 AM
    Journal entry for Prepaid Rent

    When the rent paid in advance is called Prepaid Rent, hence it is an asset.

    So all asset balance shows debit balance

    So the entry is : Debit: Prepaid Rent and Credit: Rent accoount
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Dec 27, 2011, 12:56 PM
    Your Credit will be to Cash, not Rent Account.

    When you use the rent the journal entry will be:
    Debit Rent Expense
    Credit Prepaid Rent
    muthu1984's Avatar
    muthu1984 Posts: 1, Reputation: 1
    New Member

    Jan 28, 2012, 01:52 AM
    1)Prapaid Rent A/c Dr 12000
    Cash / Bank A/c Cr 12000
    2) Rent A/c Dr 12000
    Prepaid Rent A/c 12000
    Razakmdr1988's Avatar
    Razakmdr1988 Posts: 1, Reputation: 1
    New Member

    Mar 30, 2013, 01:48 AM
    Rent Prepaid under..
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Mar 30, 2013, 11:10 AM
    Prepaid Rent is a Current Asset and will appear on the Balance Sheet.

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