Kalp Accounting Learning Articles

In current days all the Individuals and Business units are using Electric power for maintenance of their Production Unit and Office. The Electricity provider charges/bills towards consumption value on the users of Electric power. Let's discuss how to record the transaction when Electricity Expenses are paid by Cash. When Electricity Expenses are paid by Cash, the following Ledger Accounts are affected. Electricity Expenses Account shows Debit effect. Cash Account shows Credit effect. Journal Entry Ledger Posting In Electricity Expenses Account. In Cash Account Example : In the Books of M/s.Trimurthy Traders , amount paid to TPCODL for ₹420/- on dt.02/05/2021 as per Money Receipt No.300270 Pass necessary Journal Entry and Post them into their respective Ledger Accounts for the above transaction. In the above example  Debit Ledger is : Electricity Expenses Account Credit Ledger is : Cash Account Journal Entry Ledger Posting In Electricity Expenses Account. In Cash Account   <<

Practice Sheet - 1(Transactions for the month of April' 2021) TRIMURTHY TRADERS (Prop : Mr. Surya Krishnamurthy)  Financial Year : 2021-22(April' 2021 to March' 2022) Assessment Year : 2022-23 (April' 2022 to March' 2023) Date : 01/04/2021 (Transaction No.2) Opened a Current Account with Axis Bank and deposited Cash for ₹5,00,000/-. Journal Entry Let's enter the above transaction using Accounting Software TallyPrime Steps for entering the above transaction. If TallyPrime software is not open. Open TallyPrime software and on GOT screen select and press 'Enter' on 'Vouchers'. or Press 'V' on GOT screen. Press  'F4' or click on 'F4:Contra' available in Menu Bar. If already in Voucher mode continue from the screen image shown just above. Press 'F2' to enter date of transaction. Select and press 'Enter' on Cash where 'To' or 'Cr' shows. Write amount of Cash deposit in Credit column. Press 'En

Generally Banks charge some amount for providing service to their customers on different heads like, Cash Deposit Charges Cheque Clearing Charges ATM/Debit Card Charges Minimum Balance non maintenance Charges etc. Now let's discuss with example what will be the Journal Entry and Ledger Posting when Service charges are deducted by the Bank. The following Ledger Accounts will be affected. Bank Charges Account shows Debit effect. Bank Account shows Credit effect. Journal Entry Ledger Posting  In Bank Charges Account. In Bank Account Example : In the Books of M/s.Trimurthy Traders , Axis Bank charged ₹125/- to Axis Bank Current Account for Cheque clearing charges on date 02/08/2021 Pass necessary Journal Entry and Post them into their respective Ledger Accounts for the above transaction. In the above example Debit Ledger is : Bank Charges Account Credit Ledger is : Axis Bank Current Account Journal Entry Ledger Posting  In Bank Charges Account. In Axis Bank Current 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 incurred but not yet paid, the affected Ledger Accounts are : Advertisement Expenses Account - Debit Advertisement Expenses Payable Account - Credit Journal Entry Ledger Posting In Advertisement Expenses Account  In Advertisement Expenses Payable Account. Example In the Books of M/s.Trimurthy Traders , amount of expenses incurred for ₹19250/- on dt.31/08/2021 towards Advertisement as per Invoice No-710 received from Kumkum Advertisement. Pass necessary Journal Entry and Post the