Question

A company using the accrual basis of accounting receives its utility bill which will be paid in two weeks. The entry will
involve a debit to:

​

Answer 1

Answer:

At the time of Bill:

utility bill a/c Dr

to Biller name a/c

At the time of payment:

Bill name a/c Dr

to Cash/Bank a/c

Explanation:

utility bill comes under head Expenses

Biller name comes under creditors