Recording Audit Fees Paid by Cheque Journal Entry
Audit fees paid by cheque are a common transaction for businesses that engage external auditors to review their financial statements. When making such payments, it is important to accurately record the transaction in the company's accounting records. Below is a detailed explanation of how to record audit fees paid by cheque journal entry.

1. Identify the Transaction
Before recording the journal entry, you must identify the transaction of audit fees paid by cheque. This information can typically be found in the company's bank statement or payment records.

2. Determine the Amount
Next, determine the exact amount of audit fees paid by cheque. This amount will be used in the journal entry to reflect the correct financial impact on the company.

3. Record the Journal Entry
To record the audit fees paid by cheque, you will need to make the following journal entry:
- Debit: Audit Fees Expense (Income Statement account)
- Credit: Bank Account (Asset account)
This journal entry reflects the decrease in the company's bank account balance and the corresponding increase in audit fees expense.

4. Enter the Details
When recording the journal entry, be sure to include the date of the transaction, a brief description (e.g., "Payment of audit fees by cheque"), and the cheque number for reference.

5. Reconcile Accounts
After recording the journal entry, it is important to reconcile the bank account to ensure that the transaction has been accurately reflected in the company's financial records.
By following these steps and accurately recording the audit fees paid by cheque journal entry, you can ensure that your company's financial statements are complete and accurate.