how is salary outstanding and rent in advance treated in accounting equation.??
Dear Student,
Outstanding Salary - Capital decreases, Outstanding Salary (Liability) increases
Pre-paid Salary - Cash decreases, Pre-paid salary (Asset) increases
Pre-paid Rent - Cash decreases, Pre-paid Rent (Asset) increases
Rent received in advance - Cash increases, Income received in advance (Liability) increases
Hope this answers your query.
Keep posting for further doubts!!
Outstanding Salary - Capital decreases, Outstanding Salary (Liability) increases
Pre-paid Salary - Cash decreases, Pre-paid salary (Asset) increases
Pre-paid Rent - Cash decreases, Pre-paid Rent (Asset) increases
Rent received in advance - Cash increases, Income received in advance (Liability) increases
Hope this answers your query.
Keep posting for further doubts!!