Incurred advertising expense $165 on credit from the mercury star(tax invoice no.393)
What is the treatment? Is it goes to general journal or general ledger?

haider78605

First it should be entered in general jounal as follows and then it should be posted in general ledger.

Advertising expenses Dr. 165
Accounts Payable- Mercury Star Cr 165

jmal kamal

how i can create an accounting worksheet

kasfi

Definitely, first journal is prepared like
advertising a/c dr 165$
mercury 165$
then after making journal you have to separately put different balances under differnt a/c title.for example in advertising a/c ledger, which is in debit side it should be written
TO MERCURY 165$ AND VICE-VERSA.
But when you are preparing income statement,consider ad expense as indirect expense in
profit and loss a/c

haider78605

I attach format of work sheet

Attached Files

worksheet format.xls (21.0 KB, 3 views)