Business Expenses Journal Entry

Business expenses are costs incurred in the ordinary course of business. These include utilities, rent, salaries, and other operating expenses. Properly recording these expenses is essential for accurate financial reporting and tax purposes.

Scenario: Various Business Expenses

1. Payment for utilities.
2. Payment for rent.
3. Payment for salaries.
4. Payment for office supplies.

Journal Entries for Business Expenses

Example 1: Payment for Utilities

Particulars	Debit (₹)	Credit (₹)
Utilities Expense A/c	8,000
To Cash/Bank A/c		8,000
(Being payment made for utility bill)

Example 2: Payment for Rent

Particulars	Debit (₹)	Credit (₹)
Rent Expense A/c	15,000
To Cash/Bank A/c		15,000
(Being payment made for rent)

Example 3: Payment for Salaries

Particulars	Debit (₹)	Credit (₹)
Salaries Expense A/c	25,000
To Cash/Bank A/c		25,000
(Being payment made for employee salaries)

Example 4: Payment for Office Supplies

Particulars	Debit (₹)	Credit (₹)
Office Supplies Expense A/c	5,000
To Cash/Bank A/c		5,000
(Being payment made for office supplies)

Detailed Examples:

Example 5: Payment for Advertising

Assume a company pays ₹20,000 for advertising expenses.

Particulars	Debit (₹)	Credit (₹)
Advertising Expense A/c	20,000
To Cash/Bank A/c		20,000
(Being payment made for advertising)

Example 6: Payment for Travel Expenses

Assume a company pays ₹12,000 for business travel expenses.

Particulars	Debit (₹)	Credit (₹)
Travel Expense A/c	12,000
To Cash/Bank A/c		12,000
(Being payment made for business travel expenses)

Example 7: Payment for Insurance

Assume a company pays ₹10,000 for insurance premiums.

Particulars	Debit (₹)	Credit (₹)
Insurance Expense A/c	10,000
To Cash/Bank A/c		10,000
(Being payment made for insurance premiums)

Additional Example:

Example 8: Payment for Telephone Expenses

Assume a company pays ₹3,000 for telephone expenses.

Particulars	Debit (₹)	Credit (₹)
Telephone Expense A/c	3,000
To Cash/Bank A/c		3,000
(Being payment made for telephone expenses)