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narinder-raheja
Level 1

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

 
Solved
Best answer September 26, 2019

Best Answers
john-pero
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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2 Comments 2
john-pero
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

qbteachmt
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).