![]() ![]() Telephone bills received but not paid journal entries will be nothing but the accrual of expenses. Telephone bill received but not paid journal entry If the refund period is less than 12 months, then it can be part of the current asset otherwise, it’s a non-current asset. The point that needs attention here is the classification of such deposits. ![]() However, if any costs are incurred as a refundable deposit, it will qualify as an asset. The Monthly Telephone charges are expenses. ![]() So, those expenses will be on the debit side of the journal entry because it falls under Nominal Account. Telephone charges are expenses to the business. Therefore, the Paid telephone charges for journal entries will be Your Questions and Our Solutions Is telephone charges debit or Credit? The Telephone expenses Payable GL gets nullified. It’s pretty common to record the Liability account with the vendor’s name, like the ABC Telephone payable GL account. Therefore, the Liability account will be credited in the journal entry and let’s see the Journal entry. Per Personal Account Golden Rules of Accounting, Debit the Receiver and Credit the Giver. This GL is a Liability account, and it’s part of a Personal Account. Another GL Account that will be part of the second leg of the journal entry is telephone charges payable GL. We need to identify all the GL accounts that are part of this transaction. Recording the Paid Telephone Charges Journal Entry Telephone Charges are recorded by debiting the telephone expenses and crediting the Liability. We need to identify the other GL accounts which are affected due to this journal entry. Nominal Accounts Golden rule is “Debit all expenses or Losses and Credit all Income or gains.” What are the other considerations relating to the telephone expenses journal entry? What is the Golden Rule of accounting applicable for Telephone Charges? Read more about the rent paid expenses journal entry. Rental expenses is another similar indirect expenses. Telephone charges are in the nature of expenses and fall under the Nominal Account category of the Golden rules of accounting. What type of Account are telephone charges? So, we can try to resolve all the basic questions like the type of Account, applicable accounting rules, and different considerations before recording the journal entry. Now, we got a concrete understanding of the nature of this account balance.
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