Question

What will be the journal entry for paid for postage rupees 150?

Answer 1

Postage A/c.                   Dr.              150

           To  Cash A/c.                                         150

(Being postage charges paid)

Answer 2

Answer:

Explanation:The journal entry would be

Postage Charges A/c Dr.......  Rs 150

To Cash A/c.......Rs 150

In order to understand the above journal entry we first need to understand the three basic golden rules of the double entry system as followed in accountancy. They are as follows:

Debit that comes in, Credit that goes out .

Debit all expenses, Credit all incomes.

Debit is the receiver, Credit is the giver .

In the above example since the transaction involves cash component we need to reduce the cash balance by the said amount by crediting it and pass a debit entry under the head postage charges .

Hope this helps.