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?


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


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.