Received And Paid Utility Bill Journal Entry

Received Utility Bill Journal Entry / Utilities Bill Expense Journal Entry

When we received Utilities Bill from suppliers company i.e., suppliers of electricity, gas, water, etc., then it is an Expense (Utilities Expense) for the business to be paid at future date as the business used the utilities facilities from the suppliers company but still the payment is not made to suppliers of utilities companies. So it creates a Current Liability for the business to pay to suppliers of utilities companies.

So, in that case, we record the following entry as shown below:

(a)

                                                              Utilities Bill Expense a/c  XXX

 

                                                                                                              Accounts Payable a/c  XXX

 

                                                             (Received Utilities Bill From Suppliers Company)

Paid Utility Bill Journal Entry

When we, actually, paid utilities bill expense by making payment to suppliers company, then, we write off our Liability (Accounts Payable) as we paid to suppliers company by cash or by cheque / check.

The entry for paying is shown below:

(b)

                                                                        Accounts Payable a/c  XXX

 

                                                                                                              Cash a/c / Bank a/c  XXX

 

                                                 (Paid To Suppliers Company For Utilities Bill Expense By Cash / Bank)

When we combine above two journal entries (a & b) i.e., received and paid utilities bill journal entries, then the resulted entry is shown below:

                                                            Utilities Bill Expense a/c  XXX

 

                                                                                                              Cash a/c / Bank a/c  XXX

 

                                                                      (Paid Utilities Expense For Cash / Bank)

So, the final journal entry for recording received and paid utility bill is by a debit to utilities bill expense account and a credit to cash or bank account