P.Rudd company received and paid an electricity bill for £300.How would this transaction be recorded?

Question

Quizplus · Accepted Answer

This transaction involves paying for electricity, which is an expense. Expenses are recorded with a debit, which means we would debit the electricity account. Additionally, cash is being used to pay for the electricity, so we would credit the cash account. Therefore, the correct entry is to debit electricity and credit cash.

PRudd Company Received and Paid an Electricity Bill for £300