If you are referring to a utility bill, such as electric or water, that would be a liability.
If revenue (income of money) is a credit, then an expense (outflow of money) is a debit.
Debit Utilities expense Credit Cash
Jan - Debit Utilities Expense $15 Credit Accrued Expenses $15, Jan accrual. Feb - Debit Utilities Expense $15 Credit Accrued Expenses $15, Feb Accrual March - Debit Utilities Expense $12 Credit Accrued Expenses $12, Mar Accrual Feb or March (when bill is received) - Debit Utilities Expense $25 Credit Accounts Payable $25, record gas bill. and Debit Accrued Expenses $15 Credit Utilities Expense $15, reverse Jan accrual. March - Debit Accounts Payable $25 Credit Cash $25, record Check #? (could be posted in Cash Disbursements Journal).
Debit
1. [Debit] Utility Expenses 900 [Credit] Cash / bank 900
credit
Debit
Credit or debit
There are three rules for recording transactions: Personal account Debit the receiver. Credit the giver. Real account Debit what comes in. Credit what goes out. Nominal account Debit all expenses.There are three Golden Rules for Debit & Credit, whole accounting is depend on these three rules :- 1. Debit what comes in & Credit what goes out. 2. Debit the receiver & Credit the..Because to make the things debit on debit side and credit on credit side, for that purpose its important to memorize the debit and credit rule.
In accrual accounting, expenses are recorded as you get them, so say receive your Utilities Bill due the next month, you record it immediately.For example I have a $500 Utility Bill it's June 28th, the bill isn't due until say July 15th, the entry would be;Utility Expense (debit) $500Utilities Payable (credit) $500On July 15th when the bill is paid you adjust the entry as follows;Utilities Payable (debit) $500Cash (credit) $500In Cash Basis Accounting the expense isn't recorded on the books until the bill is actually paid and the entry would be;Utilities Expense (debit) $500Cash (credit) $500
Because to make the things debit on debit side and credit on credit side, for that purpose its important to memorize the debit and credit rule.
its debit.