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Expense Entries

They refer to various entries for different day to day expenses in business

 

How to Pass Entries?

EXPENSE ENTRY IN TEXT BOOKS EXPENSE ENTRIES PRACTICALLY

We normally do

Expense A/c Dr

      To Party/Cash

 

 

 

 

 

 

 

 

 

 

We normally pass double entries

Expense A/c Dr

               To Party

 

Party Dr

       To Bank/Cash

(First entry is when Bill or Invoice Received,

Second Entry when Payment Made to Party

 

However for small payments,we can do directly

Expense A/c Dr

        To  Bank/Cash

 

Later,we have to close ledger while passing entry

Profit and loss A/c Dr

                   To Expense

 

This entry is not to be passed,

Transfer to Profit and loss is done

directly by Accounting Software like Tally

 

  1. Accounts and Finance
  2. Step 2 Passing Routine Entries
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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