Rent Receivable Journal Entry

 

In accounting, rent is the payment received from tenant against the use of land during the accounting period. It is a current asset as still the payment is not received by landlord against the land services and facilities used by tenant during the period.

The rent receivable adjusting entry is recorded by a debit to rent receivable account (a current asset account) and a credit to rent received account (as a revenue account on income statements) as shown below:

 

                                         Rent Receivable a/c  XXX

 

                                                                         Rent Received a/c  XXX

 

                                                (Rent Receivable for the Period)

 

Rent Receivable is an example of Income Receivables and recorded in balance sheet.

We close rent receivable account, when the landlord actually received the payment in Cash or Bank from tenant.