Query

Passing the entry in tally will depend upon the system of accounting followed. If accrual system is followed then following entries to be passed Telephone bill Dr. To Telephone bill payable And when you make the payment Telephone bill payable Dr. To cash/bank However if accounting is done on cash basis then only one entry to be pased at the time of payment Telephone bill. Dr. To cash/bank

Accrual basis accounting is the practical way.

hi,

Telephone bill payable comes under Current Liability or Indirect Expenses?

 

Thank you so much

Thanks again

It comes under the head Current Liability

"telephone bill payable" comes under current liability and "Telephone bill paid" comes under "Indirect Expenses".