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Showing posts with the label Prepaid Rent Debit Or Credit

Which Of The Following Accounts Increases With A Debit

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The following accunts are increased with a debit: (i) Land According to the Rules of Debit And Credit , Land Account increases (e.g., due to Purchase And Sale of Land ) with a debit as it is a Fixed Asset which has normal balance on debit side of a T-Account and decreases with a credit as it has unusual on credit side of a T-Account . (ii) Prepaid Rent Prepaid Rent  (when we paid it in advance) is a Current Asset which increases with a debit and decreases with a credit as it has normal or favorable balance on debit side and negative or unusual balance on credit side of a T-Account.