Question

Which two accounts of double entry system are included when we pay out expenses?​

Answer 1

Capital and Cash are the two accounts when we pay out expenses in double entry

Answer 2

If expenses are paid from cheque or bank account :-

• Bank A/c will be credited and expenses A/c will be debited.

Journal entry :-

Expenses A/c . . . Dr.

‎ ‎ ‎ To bank A/c

Therefore two accounts involved are bank A/c and expenses A/c.

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If expenses are paid by cash :-

• Cash A/c will be credited and expenses A/c will be debited.

Journal entry :-

Expenses A/c . . . Dr.

‎ ‎ ‎ To cash A/c

Therefore two accounts involved are expenses A/c and cash A/c.