Accounting help

our electric meter have been replaced and received a bill.. how should i account. help with with entry and legder name under which head also

Replies (7)

If the expenditure amount is huge, U can capitalized otherwise it is booked under electricity charges

 

thanks. it amounts to 6000. note that we are in a rental premises. the same amount will given by ourself on the behalf of owner and such amount will deduct from the office rent payment. so whether i need to expense this???. suggest the entry.

 

when u made the payment 

owner a/c dr

to cash

when the electricity bill will come

Electricity charges dr

to owner

to cash

so i need not to expense such amount ryt??

it doen not affect ur books..bacause u paid it on behalf of someone else.

 

thanks... whether i must deduct the tds on service part of the bill??

No..u dont need it

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