Rent Payable Journal Entry

Rent Payable Journal Entry

Rent payable is a kind of liability  and therefore credited in the books of accounts. The journal entry for Rent payable is shown below. Rent is debited being expense and rent payable is credited being liability.

Date	Particulars	Dr.	Cr.
	Rent	$ xxx
	Rent payable		$ xxx

Rent payable is a liability which to be paid in future. Thus on one side the expense is charged and on other side liability is created.

Rent Payable Journal Entry Example

On 31 December 2014 Rent for the month of December amounting $ 20,000 to be paid in January, 2014 shall be recorded as under.

Date	Particulars	Dr.	Cr.
2014	Rent	$ 20,000
2014	Rent payable		$ 20,000

Rent payment Journal Entry

In next month, when the Rent shall be paid, then following entry would be recorded in the books of accounts. The liability would be removed upon payment of liability by debiting the liability and crediting the cash.

Date	Particulars	Dr.	Cr.
2014	Rent payable	$ 20,000
2014	Cash		$ 20,000