One supplier supplies vehicle on rental basis. After using the vehicle for one month, the user issued a cheque against the bill submitted by the supplier. Please advice how it is to be accounted by using debit and credit.
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One supplier supplies vehicle on rental basis. After using the vehicle for one month, the user issued a cheque against the bill submitted by the supplier. Please advice how it is to be accounted by using debit and credit.
DEBIT Motor Vehicle Rental Account.
CREDIT Bank Account.
Being m/v rent paid.
It doesn't say whether the entry is needed for the supplier or the user.
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