Included in the bank statement was a debit for the current month's electricity usage.What entry is required in the company's accounts?
A) Dr Electricity expense$\quad $$\quad $$\quad $Cr Cash
B) Dr Cash$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Cr Electricity revenue
C) Dr Cash$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Cr Electricity expense
D) Dr Accounts payable$\quad $$\quad $$\quad $$\quad $Cr Cash

Question

Quizplus · Accepted Answer

When a company pays for its electricity usage, it increases its Electricity Expense (debit) and decreases its Cash (credit). This reflects the expense incurred and the reduction in cash due to the payment.

Included in the Bank Statement Was a Debit for the Current