Rent Expense Journal Entry Example

rent expense accountingQ: Prepare the journal entry for the following transaction:

Paid rent $200.

The rent expense journal entry is not too complicated:

DR: Rent..........................$200
CR: Bank / Cash.............................$200

Probably the easiest part of working out the journal entry is the cash (or bank).

Our cash (or bank) is our asset and this asset is decreasing.

Assets increase on the left side (debit) and decrease on the right side (credit).

assets accounting equation debit credit increase decrease

So our asset, cash or bank, is credited.

The next thing is to work out the debit entry.

You can do this by simply asking yourself, "What did we pay for?"

The answer, of course, is rent.

Rent is an expense account.

Expenses are always debited, meaning that we make an entry with them on the left side.

basic accounting equation expenses

This is because expenses (1) reduce profit (2), which belongs to the owner (3).

The owner's equity occurs on the right side of our equation and expenses occur on the opposite side to this (left side).

So our expense, rent, is debited.

Does that rent expense journal entry make sense now? Let us know in a comment below. Or, add your own rent journal entry question for others to answer.

Michael Celender
Founder of Accounting Basics for Students

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Comments for Rent Expense Journal Entry Example

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by: hanadi

Debit:Rent expenses

Recording Expense
by: Anonymous

Debit - Expense 200
Credit - Bank 200

Capital Entry
by: Anonymous

When a business starts taken unsecured from two parties amount through bank can the capital entry be bank to capital?

by: Anonymous

rent a/c...Dr
to cash a/c

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