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?

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Originally Posted by doza

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?

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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

How I can create an accounting worksheet

Quote:

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Originally Posted by doza

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?

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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

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Originally Posted by jmal kamal

how i can create an accounting worksheet

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I attach format of work sheet