A Home Repair Company Paid $160 Cash For Gas And Oil Expenses On Its Van

The journal entry to record is to debit Gas and Oil Expenses Account, as these Expenses are incurred so these are increased, and credit Cash Account, as when the cash is paid, it is decreased because it is going out of the company’s business.

Journal Entry:

                                                      Gas And Oil Expenses a/c  160

 

                                                                                                      Cash a/c 160

                                                              (Paid Gas And Oil Expenses For Cash)