Journal Entry and Ledger Posting for cash payment towards Advertisement Expenses

Advertisement Expenses are the expenses of a business organization which helps in reaching a product or service to the right user of that product or service.

Aim of Advertisement expenses :

• To attract new as well as existing customers for using a product or service.

Some modes of Advertisement Expenses are listed below.

• Advertisement through Marketing personnel

• Advertisement through Wall Posters/Leaflets

• Display through TV Channels

• Use of different Online Advertising Networks etc.

When Advertisement Expenses are paid by Cash, the affected Ledger Accounts are :

• Advertisement Expenses Account - Debit

• Cash Account - Credit

Journal Entry

Ledger Posting

In Advertisement Expenses Account

 In Cash Account

Example :

In the Books of M/s.Trimurthy Traders, amount paid to Chanakya Art for ₹2050/- on dt.02/05/2021 as per Cash Memo No.270 towards printing of Leaflets.

Pass necessary Journal Entry and Post them into their respective Ledger Accounts for the above transaction.

In the above example 

Debit Ledger is :

• Advertisement Expenses Account

Credit Ledger is :

• Cash Account
  

Journal Entry

Ledger Posting

In Advertisement Expenses Account.

In Cash Account.

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Table of Contents

Related Articles :

Types of Account

Double Entry System of Book Keeping

Journal 

Ledger 

Trial Balance

Trading and Profit & Loss Account

Balance Sheet

Bank Reconciliation Statement