What will be the journal entry if we paid for repair of premises
Answers
Answer:
To record a repair or maintenance expense in your records, debit the repairs and maintenance expense account by the amount of the expense in a journal entry. A debit increases an expense account. Credit either the cash or accounts payable account by the same amount depending on how you will pay for the expense.
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Answer:
Repairs A/c Dr. xxx
To Bank xxx
(Being payment for repairs made.)
Explanation:
- The Golden Rules of Accounting-
Rule 1: For Real Accounts- Debit What Comes In, Credit What Goes Out.
Rule 2: For Personal Accounts- Debit the Receiver, Credit the Giver.
Rule 3: For Nominal Accounts- Debit All Expenses and Losses, Credit all Incomes and Gains.
- Repairs A/c is a nominal account, therefore by applying the Rule 3 of accounting we will debit the Repairs A/c as it is an expense.
- Bank A/c is a real account, therefore by applying the Rule 1 of accounting we will credit the cash account as it is what is going out.
Hence, while passing the journal entry we will debit the Repairs A/c and credit the Cash A/c.
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