User Support Forum

First, I have LITTLE Accounting background but I am doing the best I can in our new church plant until the Lord sends someone else. We are using an older version of PC (8.5) but so far, in our simple environment, it is working well. This month our landlord told us to reduce our rent by the cost of some repairs we made. I want our rent to show as the full amount for budgeting purposes. The cost of materials needs to be reimbursed to a member. How do I post all this to make it balance. Obviously debit to Checking/credit to Repairs account for materials but how do I balance the Rent account against the Checking (or can I?) if I post the rent as the normal full payment? Thanks for any help!

Let's say the full rent is $500 and the cost of repairs was $50. Here is the accounting entry to enter:

Debit Rent Expense $500
Credit Repairs Expense $50
Credit Checking Account $450

The credit to the repairs expense account will be offset by the debit when you actually paid the expense. So the repairs expense account will show no net balance. In effect you're transferring the repairs expense amount to the Rent expense account.