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doza
Nov 7, 2009, 05:45 AM
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
Nov 7, 2009, 06:26 AM
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?

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
Nov 7, 2009, 07:02 AM
How I can create an accounting worksheet

kasfi
Nov 7, 2009, 07:55 AM
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?

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 different 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
Nov 7, 2009, 08:30 AM
how i can create an accounting worksheet

I attach format of work sheet