Question

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

Answer 1

Answer:

Rule Of Accounting In Payment Done By Business Organisation

When any expenses are paid by the business organisation then the expenses are increased & cash are decreased . So, the expenses are debited and cash is credited . This rule is applicable in all the payment done by an enterprise. As these expenses are indirect expenses , these are also to be shown in debit side of profit and loss account .

So, the journal entry for postage is paid by business organisation will be -

Postage A/C Dr...

Dr... To Cash A/C

(Being the postage expenses are paid by the business organisation.)

hope it may help you...

♥️♥️♥️

please mark my answer brainliest

☺️☺️☺️

#answerwithquality

#answerwithquality#BAL

Answer 2

Answer:

Rule Of Accounting In Payment Done By Business Organisation

When any expenses are paid by the business organisation then the expenses are increased & cash are decreased . So, the expenses are debited and cash is credited . This rule is applicable in all the payment done by an enterprise.