Check sibling questions
Accounts and Finance
Step 2 Passing Routine Entries

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

 

Davneet Singh's photo - Teacher, Engineer, Marketer

Made by

Davneet Singh

Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.