The correct answer is Rent A/c Dr. 500 To Landlord's Personal A/c 500 Rent A/c: Rent account records the expenses incurred for occupying or using the rental property to carry out the business. It is considered as one of the operating expenses of the business. Rent A/c is classified as a Nominal Account. Landlord's A/c: Landlord's A/c records all the amount owed to the landlord. It is a Personal Account. Three Golden RulesPersonal Account - debit the receiver, credit the giverReal Account - debit what comes in, credit what goes outNominal Account - debit all the expenses and losses, credit all the incomes and gainsSince, Rent is an expense of the business in process of carrying out the business activity, it must be debited to Rent A/c. Instead of debiting the Rent A/c, the Landlord's A/c has been debited, so to neutralise the effect of Landlord's A/c, it must be credited with Rs. 500 and Rent A/c must be debited with Rs. 500. Incorrect entry that has been passed: ParticularsAmount Dr. Amount Cr. Landlord's A/c Dr500 To Cash/Bank A/c 500 Correct entry that should have been passed: ParticularsAmount Dr. Amount Cr. Rent A/c Dr500 To Cash/Bank A/c 500 Rectifying Entry:ParticularsAmount Dr. Amount Cr. Rent A/c Dr500 To Landlord's A/c 500