What is Utilities Payable

Utilities Payable is the amount due from company to utilities companies due to non payment against the services (Electricity, Gas, Telephone Facilities, etc) received by it for the month. It is a Current Liability for the company as it is payable usually on monthly basis or within one year.

Utilities Payable is shown on the Balance Sheet.

Utilities Payable Journal Entry

The following Journal Entry is recorded in the Book of company:

                                    Utilities Expenses a/c  XXX

                                                                       Utilities Payable a/c  XXX

                                            (Utilities Expenses Payable for the Month)

At the end of the accounting period, when the company paid the utilities expenses, then following entry is recorded as shown below:

                                      Utilities Expenses a/c  XXX

                                                                          Cash a/c / Bank a/c  XXX

                                                    (Utilities Expenses Paid for the Month)