Question 7 of 7beginner🧠 RememberFill in the Blanks1 mark

Issued a cheque for ₹8,000 to pay rent. The account to be debited is ______.

Correct Answer

Rent Account

Exercise: Test Your Understanding - IV | Q: 1
For More Understanding

Explanation

According to the textbook context, when rent is paid (whether by cash or cheque), it is an expense which decreases capital and is therefore recorded as a debit. The context explicitly shows in the 'Analysis of transaction' section that 'The payment of rent is an expense which decreases capital thus, are recorded as debits.' The ledger extract also demonstrates this with 'Rent Account Dr.' showing entries for rent payments.

Solution Steps

  1. Step 1: Identify that rent payment is an expense.

  2. Step 2: Apply the rule that expenses decrease capital and are therefore debited.

  3. Step 3: Conclude that Rent Account is the account to be debited when paying rent by cheque.

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