Question

Paid telephone charges in cheque journal entry

Answer 1

The Current transaction affects two accounts Telephone charges account(it is a nominal account;all losses Gains income expenses come under nominal account; Telephone charges is an expense),, Bank account.. because Telephone charges are paid in Cheque...(it is a Real account; all assets and Liabilities come under Real account; bank balance is an asset) ..


The Three golden rules of accounting are....

Personal Account: Debit the receiver, credit the giver

Nominal account: Debit All expenses and losses, credit All incomes and gains

Real Account: Debit what comes in ,credit what goes out

In contention with the above rules...

Telephone charges should be debited (it is a nominal account/its an expense)

Bank account should be credited (it is a Real account/cash from bank is Going out)

The Journal Entry will be....

Telephone charges a/c Dr xxxxx

To Bank a/c. xxxx

(Being Telephone charges paid)

Answer 2

Explanation:

Paid Telephone Charges Rs. 500/- and Taxi Fare Rs. 200/-