Payment of electricity charges by cheque will be recorded on:
1 point
a] Debit side of bank column
b] Credit side of bank column
c] Debit side of cash column
d] Credit side of cash column
Answers
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What is the journal entry for issuing a bearer cheque for the payment of electricity bill? Please write down all correct possible entries.
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2 Answers
Satish Kamojula, Sr finance analyst at Amazon India Development Center
Answered July 4, 2016
Dear friend..,
Electricity bill payment is an expenditure according to the nominal account all expenditure and losses are debit and all incomes and gains are credit. So electricity bill expenses we have to debit.
We are giving bearer cheque for to payment of electricity bill so as per real account debit the receiver and credit the giver. Bank account we have to take credit.
Final entry...
Electricity charges A/c ......dr
Explanation:
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