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Originally Posted by selby Hi everyone
This is the current entry......
Paid electricity expense of $860, previously recorded as unearned revenue.!!!!!!!
I knew the first entry which was electricity we havent paid and the entry is accured expense
Debit-Electricity expense
Credit- electricity account payable.
Now i have to settle the above entry which we have to pay the electricity expense.so
Debit - electricity a/c payable
Credit- Cash.
My question is how about the electricity expense from the last period of 860 which is still appear from the last trial balance how we close that off.... |
If That 860 is appearing in last balance sheet it means that is not an expense coz balanxe sheet never contains expense of such thing.
That is an outstanding expense which should be closed off by deducting it from the current years profit and loss a/c from the respective expense, as in this case it is electricity expense.
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