A trader paid ₦18,000 for rent by cheque. The correct ledger entry is
ADebit Bank Account; Credit Rent Account
BDebit Rent Account; Credit Cash Account
CDebit Rent Account; Credit Bank AccountCORRECT
DDebit Bank Account; Credit Capital Account
GCEFinancial AccountingDouble Entry and Ledgers2024
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Why the answer is C, and why the others tempt you.
Rent is an expense, so the Rent Account is debited to record the increase in expenses. Payment by cheque reduces the bank balance, so the Bank Account is credited. Option B is wrong because the payment was by cheque, not cash, making Bank the correct credit account.
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