Electricity is an essential part of our lives. It powers our homes, businesses, and other establishments. Consequently, electricity bills need to be paid regularly. Recording these payments accurately is necessary for proper financial management. In this article, we will discuss how to record electricity bill payable journal entries in Tally.
Understanding Electricity Bill Payable Journal Entry in Tally
Electricity bill payable is an account that shows the amount of money owed to the electricity provider for the electricity consumed. This amount is recorded as a liability in the books of accounts. When an electricity bill is received, it is necessary to record the amount in the books of accounts to ensure that the amount is paid on time.
Recording Electricity Bill Payable Journal Entry in Tally
Tally is a popular accounting software that is used to record and manage financial transactions. Recording electricity bill payable journal entries in Tally is simple and straightforward. Here is a step-by-step guide on how to do it.
- Open Tally and select the company for which you want to record the journal entry.
- Go to the Accounting Voucher creation screen.
- Select the Journal voucher type.
- Select the appropriate date and enter the reference number (if any).
- Select the ledger accounts for the entry. For electricity bill payable, the accounts used will be “Electricity Bill Payable” and “Cash/Bank”.
- Enter the amount of the electricity bill in the Debit column and select the Cash/Bank account in the Credit column.
- Click on “Save” to save the entry.
Once the entry is saved, the electricity bill amount will be recorded in the books of accounts and will be shown as a liability.
Recording electricity bill payable journal entries in Tally is an easy process. By understanding the concept and following the steps outlined above, you can easily record the electricity bill payable journal entry in Tally. Doing so will ensure that your accounts are up-to-date and accurate.