Paid Travelling Expenses By Cash / Cheque Journal Entry

Journal Entry For Travelling Expenses Paid By Cash

When we paid travelling expenses of Rs. 30000 by cash, then we debit travelling expenses account and credit to Cash Account as shown below:

                                                                    Travellings Expenses a/c  30000

 

                                                                                                                     Cash a/c  30000

                                                                      (Paid Travelling Expenses By Cash)

What Is The Journal Entry For Travelling Expenses Paid By Cheque / Check?

When we paid travelling expenses of Rs. 30000 by check, then we credit bank account instead of cash account as shown below:

                                                                     Travelling Expenses a/c  30000

 

                                                                                                                 Bank a/c 30000

 

                                                             (Paid Travelling Expenses By Cheque / Check)

 

Actually, we paid through check, then it means that we pay through the business’s bank account where the cash is deposited.

Usually, travelling expenses are indirect expenses but if these are related with the direct cost of production of goods or services or when these are related with manufacturing process or factory cost, then theses are considered as indirect expenses.