Debiting and crediting p&l account in journal entries

A/c entries 295 views 1 replies

Guruprasad.R

Team Lead

57 Points Joined August 2012

Hi All,

Please help me to understand as in which and all situations P&L account will be debited or credited in journal entries. As below are the examples where I have come accross using P&L debit and P&L credit:

P&L debit

Provision for discount on Debtors account ..CR.

P&L debit ..DR

Prov for Exp account ...Cr

Replies (1)

ACCOUNTANT

Student

559 Points Joined September 2011

An expense in naturally debited to P&L a/c, when a provision is being created for such expense, P&La/c is naturally debited with such provision., by making a simply adjustment entry to the ORIGINAL EXPENSE a/c.,like a chain cut process.,