Journal entry for office rent expense

[Allauddin Patel]

What is journal entry for office rent paid by proprietor from savings account ?

Savings account also maintained in books of account of proprietor ...

AI Summary

Office rent accounting depends on whether the savings account is a business bank ledger or proprietor's personal account.
Office rent paid through a savings account is accounted for according to whether that account is a business bank ledger or the proprietor's personal account. If it is part of the business books, debit Office Rent Account and credit Savings Bank Account. If the proprietor pays from a personal savings account, debit Office Rent Account and generally credit Proprietor's Capital Account, reflecting capital introduced for a business expense. Classification of the savings account determines the proper entry and balance-sheet presentation.