What accounts are affected when a company pays electricity bill?
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❥︎Electricity is an expense. You will debit the utilities expense account and credit accounts payable. When the bill or invoice is paid, it will affect accounts payable and cash. Because you are reducing the liability of accounts payable, it is the debit side of the transaction.
❥︎We are debiting electricity charges because the accounting rules as that we should debit all expenses and credit incomes, here electricity charges an expense for the firm therefore we will debit them .
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who deid because of the stagnant water
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