{"id":2336,"date":"2011-11-13T10:33:13","date_gmt":"2011-11-13T08:33:13","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=2336"},"modified":"2011-12-04T11:48:55","modified_gmt":"2011-12-04T09:48:55","slug":"basic-accounting-%e2%80%93-phone-bills","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/basic-accounting-%e2%80%93-phone-bills\/","title":{"rendered":"Basic Accounting \u2013 Phone bills"},"content":{"rendered":"

We have just received a phone bill for 150 at the start of the month. Usually they are not paid right away, but on the due date of the payment.<\/p>\n

Accounting Entries<\/strong><\/p>\n

So first we have to \u201cregister\u201d the phone bill. We are going to add 150 to expenses and accounts payable.<\/p>\n\n\n\n\n
\n<\/td>\n\nDebit\n<\/td>\n\nCredit\n<\/td>\n<\/tr>\n
\nExpense\n<\/td>\n\n150\n<\/td>\n\n<\/td>\n<\/tr>\n
\nAccounts Payable\n<\/td>\n\n<\/td>\n\n150\n<\/td>\n<\/tr>\n<\/table>\n

Now when you have paid for the phone bill, you have given money for it, you decrease accounts payable and cash for 150. <\/p>\n\n\n\n\n
\n<\/td>\n\nDebit\n<\/td>\n\nCredit\n<\/td>\n<\/tr>\n
\nAccounts Payable\n<\/td>\n\n150\n<\/td>\n\n<\/td>\n<\/tr>\n
\nCash\n<\/td>\n\n<\/td>\n\n150\n<\/td>\n<\/tr>\n<\/table>\n

Reporting<\/strong><\/p>\n

When you receive a phone bill and you haven\u2019t paid for it then you should add that under Current liabilities. In our example we are adding 150 under Current liabilities \u2013 Trade and other payables.
\n
\n\"Phone<\/p>\n

Now when you have paid for the phone bill, then you can remove the amount from liabilities and decrease cash by 150. We assume that you had 2,000 before, so its 2,000 – 150 = 1,850<\/p>\n

\"Phone<\/p>\n

Finally we are going to add administrative expenses to Income statement \u2013 they increase by 150. <\/p>\n

\"Phone<\/p>\n","protected":false},"excerpt":{"rendered":"

We have just received a phone bill for 150 at the start of the month. Usually they are not paid right away, but on the due date of the payment. Accounting Entries So first we have to \u201cregister\u201d the phone bill. We are going to add 150 to expenses and accounts payable. Debit Credit Expense […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,35],"tags":[],"class_list":["post-2336","post","type-post","status-publish","format-standard","hentry","category-1-basic-accounting","category-1-7-basic-entries"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t