Journal Entry for Expenses

Journal Entry for Expenses

Expenses or increase in expenses are debited in the books accounts and other aspect is credited which may be either cash or a liability.

Recording Rule for Expenses

Increase in expenses are debited and decrease in expenses are credited.

1.   Cash Paid Expenses Journal Entry:

Expense is debited and cash is credited in case expense is immediately paid . For example the rent amounting $ 40,000 paid in cash would be recorded as under. Rent is debited and cash is credited.

Date	Particulars	Dr.	Cr.
	Rent	$ 40,000
	Cash		$ 40,000

2.   Expenses Payable Journal Entry:

In case expenses has incurred, but still to be paid in future, then expenses are debited as expense and expense payable are credited as liability in  the books of accounts. 

For example the rent payable amounting $ 40,000 shall be recorded in the books of account as under. Rent shall be debited and rent payable shall be credited.

Date	Particulars	Dr.	Cr.
	Rent	$ 50,000
	Rent Payable		$ 40,000