What will be the journal entry of paid Life insurance premium Rs 500 and wages RS 3000 by cash.
Answers
Answered by
1
Drawing Account. Dr. 500
Wages Account. Dr. 3000
To Cash Account. 3500
Explanation:
Life Insurance is a personal expense of owner...which he paid from firm.... that's why it's drawing....
Wages is expense for firm ....
therefore debit wages...
Cash goes out from firm.
(credit what goes out) therefore credit cash
Similar questions