Journal Entry and Ledger Posting for Advertisement Expenses incurred but not yet paid.

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

Journal Entry for Advertisement Expenses incurred but not paid

Ledger Posting

In Advertisement Expenses Account

Outstanding Advertisement Expenses - Posting in Advertisement Expenses Account.

 In Advertisement Expenses Payable Account.

Outstanding Advertisement Expenses - Posting 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 them into their respective Ledger Accounts for the above transaction.

In the above example

Debit Ledger is :

  • Advertisement Expenses Account

Credit Ledger is :

  • Advertisement Expenses Payable Account

Journal Entry

Journal Entry for Advertisement Expenses incurred but not yet paid - Example

Ledger Posting

In Advertisement Expenses Account 

Advertisement Expenses incurred but not yet paid - Posting in Advertisement Expenses Ledger Account.

In Advertisement Expenses Payable Account.

Advertisement Expenses incurred but not yet paid - Posting in Advertisement Expenses Payable Ledger Account.

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Location: Cuttack, Odisha, India

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