Electricity payable enty

hi, we received electricity bill from abc 50000 in march month and paid in April, pass payable entry...
Replies (2)
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.

In March month:
Electricity Expenses A/c Dr..
To Electricity Payable/Electricity Co. A/c

At time of payment :
Electricity Payable/Electricity Co. A/c Dr..
To Cash/bank A/c
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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