Journal Entry for Paid Expenses

Any amount spent in order to purchase or sell goods or services that generates revenue in the business is called expenses. Rent, Commission paid, Salaries & Wages Paid, Interest paid, etc are some examples of Expenses. Expenses are a part of the Nominal account. The Cash Account will be decreased with the amount paid as expenses, so it will be credited and Expenses will be debited according to the rule of the Nominal account.

Journal Entry: 

Example 1: Rent paid in cash ₹5000.

Solution:

Example 2: Interest paid in cash ₹1,000.

Solution:

Example 3: Salaries paid ₹20,000.

Solution: