The Company writes a cheque to pay for Rs 10,000 for electricity bill. Which of the following is correct in this regards?

Bank account shall be credited

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Electricity expense account shall be debited

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Both A & B

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Both A & B

The correct entry shall be:
Electricity Expense A/c Dr Rs 10,000
To Bank A/c Rs 10,000

Suggest Corrections

Similar questions

Company purchased a machine on credit from Mr. Ram for Rs 1,00,000. Now a cheque has been issued in his favor. Which of the following is correct?

X draws a bill on Y for Rs. 3,000. X endorsed this bill to Z. Y will pay the bill amount to :

You pay Rs 54,000, via cheque as an installment of the Rs 8,00,000 loan acquired from bank. Of this amount, Rs 50,000 is applied to the principal, and Rs 4,000 is applied to the loan interest. Which of the following is correct?

The total of the debit side of Ram`s account, a creditor of the company is Rs 10,000, while the total of the credit side is Rs 20,000. Which of the following is true in this regards?

Q. solve:
Example: State whether the seller is an unpaid seller or not in each of the following alternative cases:
Case (a) X sold some goods to Y for Rs. 10,000. Y paid Rs.9,900 but failed to pay the balance.
Case (b) X sold some goods to Y for Rs. 10,000 and received a cheque for the full price as conditional payment. On presentment, the cheque was dishonoured by the Bank.
Case (c) X sold some goods to Y for Rs. 10,000 on a credit of one month. One month has not yet expired.
Case (d) X sold some goods to Y for Rs. 10,000 on a credit of one month and one month has expired and the price remains unpaid.
Case (e) X sold some goods to Y for Rs. 10,000 on a credit of one month. Y became insolvent during the period of credit.

Join BYJU'S Learning Program

The Company writes a cheque to pay for Rs 10,000 for electricity bill. Which of the following is correct in this regards?

The correct option is C Both A & B The correct entry shall be: Electricity Expense A/c Dr Rs 10,000 To Bank A/c Rs 10,000

The correct option is C
Both A & B

The correct entry shall be:
Electricity Expense A/c Dr Rs 10,000
To Bank A/c Rs 10,000