Question

Postage is paid by business organization. Explain the rule of accounting in this transaction

Answer 1

Answer:

Explanation:

regarded as an expense...

can be seen as recording it in the petty cash book ...

or can be credited from the business bank account and debited to the postage account

Answer 2

The answer is shown below:

Explanation:

There are basically three golden rules of accounting

1. Debit the receiver, credit the giver which applies to the personal account

2. Debit all expenses and losses, and credit all income and gains which applied to a nominal account

3. Debit what comes in credit what comes out which applies to real account

In the given scenario, since the postage is paid, so the journal entry would be

Postage expense A/c Dr

     To Cash or Bank A/c

(Being postage is paid)

Here, postage is an expense and the expense account shown in the debit side so it affects the nominal account

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