Electricity Bill Expenses Come Under Which Account
Electricity Bill Expense Is Which Type / Kind Of Account (Electricity Bill Expense Is Direct Or Indirect) Electricity Bill Expense is a Nominal Account as it is closed to Income Summary Account at the end of the accounting period. This Expense is recorded in Income Statement as an indirect expenses if it is not related with direct cost or cost of production. But electricity bill expenses are neither considered as real accounts (accounts related with assets and liabilities) nor personal accounts (accounts related with natural and artificial persons i.e., Sole Proprietor such as Mr. A, ABC Company such as ABC Company’s Account , etc.). However, when these become due then these are considered as real accounts i.e., liability for the company paying electricity bill and assets for the supplies of the electricity. Is Electricity Bill An Expense Or Asset? Actually, electricity bill is an expense as these are paid to suppliers of the company every month in order ...