Journal entry for Payment of cash for petrol
Answers
Answered by
24
Power and Fuel A/C Dr.
To Cash A/C
(Being Cash paid for petrol )
Answered by
22
3 golden rules
personal accounts - debit the received and credit the giver
real accounts -debit what comes in and credit what comes out
nominal accounts - debit all the expenses and losses, credit all the income and gains
as per the question 2 accounts affect purchase account and Cash account
Purchase account - Nominal account
cash account - real account
by applying the golden rules ,
payment for petrol is expenses therefore its debit . cash is real account which goes out of business therefore its credit .
Journal entry
Petrol or fuel charges A/c Dr
To Cash A/c
(Being paid for petrol)
Hope its useful..!!
Similar questions