What does rent and council rates come under?
submitted by Walter Seznick

Rb

Council rate, or property taxes, would result in a debit on property tax expense, and a credit on taxes payable.

Rent is a little different. Most companies prefer to create a prepaid account called "Prepaid Rent." This helps you plan for the recurring expense before it occurs. You would debit rent expense, and credit prepaid rent. This helps you set aside the cash so you don't spend it somewhere else.