Journal Entry and Ledger Posting for cash payment towards Electricity Expenses

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

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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