In this clip, we will learn how to pay any expense in cash.
Write with me, rent paid Rs.2000 by cash.
We have discussed this in many clips.
We have paid from the bank and credited the bank account.
This time, let's pay from cash.
Cash is also important.
There are many places where you will be asked to pay Rs.100
or Rs.200.
Cash is also important.
Sometimes the network does not work.
It shows server error, payment failed.
Then you get stuck.
Keeping cash is always necessary.
Until cash is running.
If it is completely closed, then the matter is different.
Rent paid Rs.2000 by cash.
We will solve this.
What will be the first step?
Which two accounts are affected?
First, the asset called cash will be reduced.
Absolutely right answer.
Cash balance will be reduced.
Asset called cash will be reduced.
Very good.
And second.
Expense has increased.
Profit will fall.
Expense has increased.
We have to pay Rs.200.
What is the name of the expense?
Rent.
Expense has increased.
Asset called cash has reduced.
If the expense increases, then what do we do?
Write from red pen.
If the expense increases, then we debit it.
If the asset decreases, then we credit it.
So our entry is complete.
Date.
Particular.
Amount.
Expense called rent is increasing.
So we will debit it.
For example, this is the entry of 21st April.
21st April, 2023.
Expense called rent is debit.
Rent account debit.
How much is it? Rs.2000.
And.
A little bit.
To the side.
To cash account asset.
We will debit Rs.2000.
And we will state what has happened.
Cash paid for rent.
We have paid the rent.
Cash in cash.
We have paid the rent.
Sir, for example.
If this loan was on us, then what would happen?
Friends, if we had paid from the bank, then the bank would
have come.
If we are paying from cash, then cash has come.
If there is a loan, then we will write that there is a loan.
Here, instead of bank or cash, we will write that there is
a loan.
Sir, what will be its name?
Outstanding Rent Account.
We will see its entry in some other clip.
Outstanding Rent Account.
There is a loan, we have not paid.
We have used the building.
We have used the place.
But when the question of paying the rent came, we did not
pay.
So in such cases, the word rent outstanding comes.
Okay.
So this was the entry of the rent payment.
Thank you for now.