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 haven't 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...

Quote:

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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....

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If That 860 is appearing in last balance sheet it means that is not an expense because 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.

Ahmad deposited $340000 cash in the bank in the name of the business.
What is debit and what credit ? Answer with details