Outstanding Rent Is A Nominal Account Or Real Or Personal Account

Outstanding Rent Is Which Type Of Account?

Accrued Rent / Rent Payable / Outstanding Rent is not a Nominal Account as it is not closed to Income Statement while a nominal account always closed for the accounting period.

Outstanding rent is also not a real account as it is related with representative personal account.

So, outstanding rent is a Representative Personal Account, which is a type of personal account, as it is used to show all of the certain landlords or owners to whom the company is liable to pay rent during the accounting period. All of the rent for various months are added up and we give a name of “Outstanding Rent Account” to represent all of these rent accounts as it is payable to certain landlords. Thus, outstanding rent stands for all of the landlords or owners to whom the business did not paid rent during the month.

 

So, outstanding rent is considered as a personal account and not a nominal or a real account.