Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 45 - No. 22)
Which accounts are impacted by the payment of monthly insurance premium via standing order?
Debit bank, credit cash
Debit cash, credit bank
Debit insurance expense, credit bank
Debit bank, credit insurance expense
Explanation
The bank account decreases, as the money is paid to the insurance company. An expense is recorded on the debit side.
Comments (0)
