On which side the decrease in the following accounts will be recorded? Also mention the nature of account: 1. Cash 2. Bank Overdraft 3. Rent Paid 4. Salary Paid 5. Outstanding Rent 6. Prepaid Insurance 7. Manoj, Proprietor of the business.

Accounts Decrease Recorded at Side Nature i. Cash Credit Asset ii. Bank Overdraft Debit Liability iii. Rent Paid Credit Expense iv. Outstanding Rent Debit Liability v. Prepaid Insurance Credit Asset vi. Manoj, Proprietor of the business Debit Capital

On which side the decrease in the following accounts will be reco…

Download App

Question

On which side the decrease in the following accounts will be recorded? Also mention the nature of account:

Cash
Bank Overdraft
Rent Paid
Salary Paid
Outstanding Rent
Prepaid Insurance
Manoj, Proprietor of the business.

✓

Answer

	Accounts	Decrease Recorded at Side	Nature
i.	Cash	Credit	Asset
ii.	Bank Overdraft	Debit	Liability
iii.	Rent Paid	Credit	Expense
iv.	Outstanding Rent	Debit	Liability
v.	Prepaid Insurance	Credit	Asset
vi.	Manoj, Proprietor of the business	Debit	Capital