Multiple choice general knowledge

What will be credited when Rent is paid by cheque.

  1. Bank A/c

  2. Cash A/c

  3. Rent A/c

  4. Rent Paid A/c
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A Correct answer
Explanation

When rent is paid by cheque, the Bank account is credited (money goes out of the bank) and the Rent account is debited (expense is incurred). This follows the rule 'Debit the receiver, Credit the giver' applied to nominal and real accounts.

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