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Question : Rent received Rs 3,500 and rent credited to Income and Expenditure Account is Rs 4,000, where would the difference be transferred?

Option 1: outstanding Rent Rs 500 shown on the liabilities side of balance sheet 

Option 2: outstanding Rent Rs 500 shown on the assets side of balance sheet 

Option 3: Rs 500 Rent received in advance shown on the liabilities side of balance sheet 

Option 4: Rs 500 paid in advance shown on the assets side of balane sheet 


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: outstanding Rent Rs 500 shown on the assets side of balance sheet


Solution : Rent credited to Income and Expenditure Account = Rs 4,000
(-) Rent received                                                      = (Rs 3,500)
Closing balance in Balance Sheet                           = Rs.500
Hence, the correct option is 2.

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