What is Outstanding Rent - Journal Entry
Outstanding Rent Definition And Meaning / Rent Payable Definition And Meaning / What Is Rent Payable Previously, we studied about Prepaid Rent , but here we will study about Accrued Rent or Outstanding Rent or Rent Payable from the point of view business which already enjoyed the benefit but still not paid expenses at the end of accounting period. Rent Payable is an example of Accrued Expenses . Outstanding Rent In Balance Sheet When the company makes a rental agreement with Rental Company, then Rent paid by the company to Rental Company is based on Accrual Basis of Accounting i.e., at the end of Current Accounting Period, the company is liable to pay rent against the benefits enjoyed by it. As Expense (Rent) is not paid by the business at the end of Accounting Period, so it is a Current Liability and recorded in Balance Sheet. Outsta nding / Payable / Accrued Re nt Expense Journal Entry Exa...