Rent Expense is What Type of Account?

Rent is a Nominal Account or Proprietary Account because it relates to Rent Expense Account which shows the summarized information of an Expense. Rent is an Expense Account which is categorized under impersonal account as a nominal account. It is recorded in Income Statement or Profit And Loss Account as an indirect expense and categorized under Operating Expenses.

Rules of Debit And Credit for Rent Expense are the same as in case of Any Expense Account. The Normal Balance or Favourable Balance for Rent is Debit. However, when it increases or incurs, we debit it and when it is closed to Income Statement / Profit And Loss Account at the end of accounting, then we credit it.

Rent Expense becomes Prepaid Rent when it is paid in advance which is a Current Assets and shown on Balance Sheet on a particular at the end of closing of accounting period, if remain unexpired till at the end.