Journal Entry and Ledger Posting for Electricity Expenses paid through Bank Account.

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 through Bank Account.

When Electricity Expenses are paid through Bank Account, the following Ledger Accounts are affected.

Electricity Expenses Account shows Debit effect.

Bank Account shows Credit effect.

Journal Entry

Journal Entry for Electricity Expenses paid through Bank Account.
Ledger Posting

In Electricity Expenses Ledger Account.

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

In Bank Account.

Electricity Expenses paid through Bank Account - Posting in Bank Account.
Example :

In the Books of M/s.Trimurthy Traders, amount paid to TPCODL towards Electricity bill payment for ₹485/- on dt.01/06/2021 vide UPI Ref No.25626 from HDFC Bank Current Account.

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 :

  • HDFC Bank Current Account

Journal Entry

Journal Entry for Electricity Expenses paid through Bank Account - Example.
Ledger Posting

In Electricity Expenses Ledger Account.

Electricity Expenses paid through Bank Account - Posting in Electricity Expenses Ledger Account - Example.

In HDFC Bank Account.

Electricity Expenses paid through Bank Account - Posting in HDFC Bank Current Account - Example.

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Location: Cuttack, Odisha, India

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