Accrued Rent Journal Entry

 

Accrued Rent is a Current Liability for the business (tenant’s business) which receives rent facilities from rental company or landlord or owner during the accounting period.

Accrued Rent is a Current Asset for landlord, owner or rental company’s business as it considers it as a revenue which is earned it during the accounting period by providing services to tenant but still the payment is not received from tenant.

Accrued Rent Adjusting Entry

For Tenant’s Business:

                                          Rent Expense a/c  XXX

  

                                                                      Accrued Rent a/c  XXX

 

                                                (Rent Expense Accrued for the Period)

 

For Landlord, Owner or Rental Company’s Business

                                              Accrued Rent a/c  XXX

  

                                                                         Rent Revenue a/c  XXX

 

                                                 (Rent Revenue Accrued for the Period)

So, this is the accounting treatment of accrued rent which is totally depended upon the nature of business. For one business, it is a Current Liability and for the other business, it is considered as a Current Asset in a business transaction.