Journal Entry and Ledger Posting for Advertisement Expenses paid through Bank Account

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 through Bank Account, the affected Ledger Accounts are :

  • Advertisement Expenses Account - Debit

  • Bank Account - Credit

Journal Entry

Journal Entry for Advertisement Expenses paid through Bank Account
Ledger Posting

In Advertisement Expenses Account.

Advertisement Expenses paid through Bank Account - Posting in Advertisement Expenses Ledger Account.

In Bank Account

Advertisement Expenses paid through Bank Account - Posting in Bank Account.

Example :

In the Books of M/s.Trimurthy Traders, amount paid to Chanakya Art for ₹9570/- on dt.01/06/2021 vide IMPS Ref No.23145 from HDFC Bank Current Account towards printing of Wall Posters.

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 :

  • HDFC Bank Current Account

Journal Entry

Journal Entry for Advertisement Expenses paid through Bank Account - Example.

Ledger Posting

In Advertisement Expenses Ledger Account

Advertisement Expenses paid through Bank Account - Posting in Advertisement Expenses Account - Example.

In HDFC Bank Current Account

Advertisement Expenses paid through Bank Account - Posting in Bank Account - Example.

<< Previous | Next >>

Location: Cuttack, Odisha, India

Comments

Post a Comment

Popular posts from this blog

Ledger Account and Account Head

Image
Meaning of Ledger Account and Account Head in Financial Accounting with example.  Ledger Account : A ledger Account is a summarized statement of transactions related to a particular Person, Asset/Liability, or Income/Expense for a particular period showing opening and closing balance. A Ledger Account is posted from the Journal Register or Journal Book,commonly in a date wise ascending order. The transaction date of Ledger Account is same as the transaction date of Journal Register. In practical,Accountants omit Recording of Journal Register and post Ledger Account directly from Primary documents like Credit Voucher,Debit Voucher,Purchase Invoice,Sales Invoice,Bank Payment Acknowledgement,Bank deposit slip or Pay-in-slip etc. to avoid more time consumption. Name and Address of the Business Organization is mentioned on the top of the Ledger Account. Below the Name and Address of Organization, Name and Address of other party Ledger Account is mentioned in case of Personal Accounts like S
Read more

Journal in Financial Accounting

Image
Meaning of Journal in Financial Accounting with Example Journal is a first Accounting Record Book,in which all the transactions of a business organization are recorded in chronological or orderly manner i.e ascending date wise order from the primary Accounting documents like Credit Voucher,Debit Voucher,Purchase Invoice,Sales Invoice,Bank Payment Acknowledgement,Bank Deposit Slip or Pay-in-Slip etc. Due to the first entry of Original transactions in Journal, this is also called the "Book of Original Entry" For recording the Journal Book or Journal Register,one has to follow/understand the below mentioned three topics. Types or Classification of Accounts - For details about types of Account click here   Debit and Credit Rule - Click here to know details.  Rules of Double Entry System of Book Keeping - For details about Rules of Double Entry System of Book Keeping click here      Sample format of Journal in Financial Accounting Journal consists of Five Columns Date : This c
Read more

Double Entry System of Book-Keeping in Financial Accounting

Image
What is Double Entry System of Book Keeping in Financial Accounting ? A simple Understanding on Definition/Explanation/Outline/meaning of Double Entry system of Book-keeping in Financial Accounting with example Double Entry System of Book-keeping in Financial Accounting is a system, which means each and every Business Transaction affects or involves at least two Account. One is Debit Account and the other is Credit Account It may be more than two Accounts in a Business Transaction If only two Accounts are found in a transaction one Account will be Debited and the other Account or opposite Account will be Credited. If more than two Accounts are found in a transaction the Debit total amount must be equal to the Credit total Amount. Each and every business transaction in Double entry system of Book-Keeping is based on Traditional Approach and Accounting Equation Approach In both the above approaches, Journal Entry for a particular business transaction is same.           a)    Traditiona
Read more