Question

journal entry:- miscellaneous expenses paid on cash​

Answer 1

ANSWER :

❖ The journal entry for the transaction "miscellaneous expenses paid in cash" is :-

$: \mapsto: \: \: \sf{ \large{ Miscellaneous \: \: Expenses \: \: A/C \: \: Dr. \: \: \:(Amount)}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \sf{ \large{ \: \: To \: \: \: Cash \: \: \: \: A/C \: \: \: \: \: \: \: \: \: \: \: \:\:(Amount)}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \\ \sf{ \large{[ \: Being \: \:miscellaneous \: \: expenses \: \: paid \: \: in \: \: cash \: ] }} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \:$

EXPLANATION :

❖ The three steps involved in the process of journalising the given transaction are :-

• Step 1. Identification of accounts : In this transaction, miscellaneous expenses paid in cash. Hence, the two accounts involve in this transaction are : Miscellaneous Expenses A/C and Cash A/C.

• Step 2. Classification of accounts : According to the Modern Approach of classification, Miscellaneous Enpense A/C is an Expense Account and Cash A/C is an Asset Account.

• Step 3. Application of Debit and Credit rule : When Miscellaneous expenses paid, the value of Expense increases. Therefore, the Miscellaneous Expenses A/C will be debited (as per the rule being increase in Expsense :Debited). Again, the expenses paid in cash and hence the Asset in the form of Cash decreases. Therefore, Cash A/C will be credited (as per the rule being Assets decrease: Credited).

Answer 2

Making a cash sales journal entry:-

When you sell something to a customer who pays in cash, debit your Cash account and credit your Revenue account. This reflects the increase in cash and business revenue. Realistically, the transaction total won't all be revenue for your business.