Which Type of account
Outstanding rent is representing a person so it is PERSONAL a/c, OK but it is also a liability as it is yet to pay .Then why can't we treat it as REAL a/c because real a/c are all assets & liabilities( as we know balance sheet is based on real a/c's).. please clarify my confusion clearly
Outstanding rent is the representative personal account , it is classified as a personal account. But, expenses outstanding a/c is a personal account with a credit balance. The balance indicates the amount that is owed by the organisation on account of unpaid expenditure. Hence, treated as liability.