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Telephone charge paid into journal entry?
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Telephone charge paid into journal entry?
Telephone charge paid into journal entry
Explanation:
Telephone charges paid by a business are considered an operating expense and should be recorded in the company's accounting records. The entry for recording telephone charges paid into a journal will involve debiting the telephone expense account and crediting the cash or bank account.
Journal Entry:
- Debit: Telephone Expense Account
- Credit: Cash/Bank Account
Details of the Journal Entry:
- Debit - Telephone Expense Account: This account represents the expense incurred by the business for using telephone services. By debiting this account, we are increasing the expense on the income statement.
- Credit - Cash/Bank Account: This account represents the cash or bank balance of the business. By crediting this account, we are reducing the cash balance as the payment for telephone charges is made.
Example:
Suppose a business paid $100 for telephone charges. The journal entry would be as follows:
- Debit: Telephone Expense Account $100
- Credit: Cash/Bank Account $100
This entry accurately reflects the payment made for telephone charges and ensures that the expenses are properly recorded in the company's financial records.
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Telephone charge paid into journal entry?
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Telephone charge paid into journal entry? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Telephone charge paid into journal entry? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Telephone charge paid into journal entry?.
Telephone charge paid into journal entry? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Telephone charge paid into journal entry? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Telephone charge paid into journal entry?.
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