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

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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.

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Location: Cuttack, Odisha, India

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