hi, we received electricity bill from abc 50000 in march month and paid in April, pass payable entry...
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Quick Summary
This discussion explains how to account for electricity bills. When a bill is received, you should debit electricity expenses and credit a payable account. Upon payment, debit the payable account and credit cash or bank. The expense is then transferred to the P&L account at month-end.
At the time of booking of bills : 1.open a ledger account in creditors ledger in the name of the electricty company paying electricity.. say for example : reliance ifrastructure open another account electricty charges dr. electricty charges cr. reliance infrastructure
when paymenybis being done:
reliance infrastructure dr. to bank...
So electrict charges isvtransfered at the end of the month to Pl account.
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