Canada Rent is due; rend owed: how to understand those transactions?

[Adi-Canada]

Hello community,

I need some explanations becaise I forgot how to do with those two lines:

L1: Rent payment of $1,200 is due on January 1
L2: Rent owed, paid in full on January 5.

For me it means:

L1 = debit (rent expense) / Credit (rent payable).
L2 = debit (rent payable) / Credit (cash).

But if I do this, for sure I will get in my trial balance an umbalanced debit and credit because I need now to balance my rent expense with a credit in this line, isn't it?

Maybe I did wrong.

Thank you for your help!

 

[DrStrangeLove]

That analysis looks right to me. You owe rent as of 1 Jan XX, so you book the expense against a payable. Then on 5 Jan XX, you extinguish the payable by paying it in cash.

Why would you get an unbalanced debit and credit? So long as each entry balances, you should be fine. Why would you need a credit against rent expense?

 

[Adi-Canada]

Thank you for your reply DrStrangeLove. I just did not figured out the process still.