JSS1 Business Studies Lesson Note on Double Entry Treatment of Expenses

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DOUBLE ENTRY TREATMENT OF EXPENSES

Expenses mean spending money belonging to a business to gain more money.  It is recorded on the debit side of the books.

Types of expenses: rent, wages/salaries, postages, stationery, insurance telephone, electricity, motor expenses etc.

Example:

June 12            Vehicle expenses of N2000 paid by cheque.

Solution:  Credit Bank account, and debit Vehicle expenses account

Dr                                                        Bank                                                                  Cr

N Jan 10      Vehicle expenses              2,000

 

Dr                                                       Vehicle Expenses                                                 Cr

N June 12        Bank                              2,000

 

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