General Journal Entry for Accrued Rent

by Jagjit
(India)

Q: What is the general journal entry for accrued rent?

A: To do the journal entry for accrued rent you should first understand what this means.

Accrued means is/are owed or owing.

So accrued rent means rent owing. It is an accrued expense, a liability, meaning a debt.

The journal entry for accrued rent will be:

DR Rent (expense) $1,000
CR Accrued Rent (liability) $1,000

What we're doing above is showing that we owe for the rent expense. We record the expense occurring (debit) as well as the liability (accrued rent - credit).

When the rent is paid we record:

DR Accrued Rent (liability) $1,000
CR Bank $1,000

Bank (asset) is decreasing so we credit it. And we cancel out the liability by debiting accrued rent.

Hopefully that answers your question!

Are other accrued expenses treated differently in the journals? Do you have more questions about accrued expenses? Comment below.

Best,
Michael Celender


Related Questions and Tutorials:

• Accrued Expenses Journal Entry: Debit or Credit?
• Rent Expense Journal Entry Example
• Accounts Payable Journal Entries
• Define Liabilities

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