Accounting for IGCSE & O level - Accounting Procedures (Section 5 - No. 39)
What is the correct entry to record if a business has an unpaid expense? (The expense needs to be debited on the journal)
Credit the expense account and debit the payable account.
Credit the payable account and debit the expense account.
Debit the payable account and credit the expense account.
Debit the expense account and credit the payable account.
Explanation
An unpaid expense increases a liability (payable) and a loss (expense).
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