Prepaid Rent Is A Nominal Account Or A Real Account Or A Personal Account
Prepaid Rent / Unexpired Rent or Rent Paid In Advance is not a N ominal Account as it s hows that re nt w hich is paid i n advance b y the compa ny to landlord and against w hich still the services or b e nefits are not received b y the compa ny during t he accou nting period. Prepaid rent is also not a Real Account as it is concerned wit h livi ng or natural persons. Prepaid rent is a representative personal account w hich is a ki nd of personal account. Prepaid rent represents all of t h e landlords or owners to w h om t h e company paid rent in advance during t he accou nting period. So, t h e term “Prepaid Rent” is created. So, we ca n say t hat Prepaid Re nt is a Personal Account b ut it is not related wit h nominal and real accounts.