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Level 1

Can i enter journal entry with minus amount . for example Rent a/c Dr -5000 credit landlord -5000

 
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Best answer 09-27-2019

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Community Champion

Can i enter journal entry with minus amount . for example Rent a/c Dr -5000 credit landlord -5000

You can, but a negative debit is a positive credit and the way to do what you propose (even though not the correct way to enter the transaction) is to Credit Rent +5000 (that posts it as income) and Debit landlord +5000 (which might represent placing the rent into a current asset)

Instead, rent charged should be on an invoice or sales receipt, charged to the party (customer) paying the rent. And if you want to adjust rent already charged you would use a Customer Credit Memo to actually create what would be equivalent to Debit Rent or Credit Negative Rent

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Community Champion

Can i enter journal entry with minus amount . for example Rent a/c Dr -5000 credit landlord -5000

You can, but a negative debit is a positive credit and the way to do what you propose (even though not the correct way to enter the transaction) is to Credit Rent +5000 (that posts it as income) and Debit landlord +5000 (which might represent placing the rent into a current asset)

Instead, rent charged should be on an invoice or sales receipt, charged to the party (customer) paying the rent. And if you want to adjust rent already charged you would use a Customer Credit Memo to actually create what would be equivalent to Debit Rent or Credit Negative Rent

View solution in original post

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Level 15

Can i enter journal entry with minus amount . for example Rent a/c Dr -5000 credit landlord -5000

The "debit" from Rent (as income, asset or liability) typically is the banking activity from the Sales Receipt, or is AR for Rent Service put on an invoice (to be paid later).