Debit – What came into the business An asset came into the business. The business has paid the rent in advance and has the right to use the premises for the following three mont… See more

The Accounting Equation, Assets = Liabilities + Owners Equitymeans that the total assets of the business are always equal to the total liabilities plus the equity of the busines… See more

At the end of April one third of the prepaid rent expense (1,000) will have been used up as the business has used the premises for that month. The rent repayment is calculated … See more

Debit – What came into the business The business had use of the premises for one month, and this is now an expense for the month of April. Credit – What went out of the busines… See more