If i pay for an expense eg Bank charges. How do i make it show in the Profit and Loss account?
Profit and Loss is not an account. It is a statement listing balances of income and expense accounts. When paying bank charges, allocate the expenses to an expense account, such as Bank charges.
Thanx for this Question. Tut would this Bank Charges be done by a Journal Entry, because one gets it from the Bank Statement. It is not a physical payment. Am I correct in saying this?
Maybe DT Accounting Fees under Expenses and CT the Bank Account.
when spending money just add another line selecting the Bank Charges under accounts column and allocate the charges against it.
No, it still is a physical payment as money is taken from your account, it is just that the bank makes the payment on your behalf instead of asking you to make the payment yourself.
Yes I know. What I meant is that you do not do the payment. It is deducted as per bank statement.
My question was… Should I show it with a journal entry (DT Bank Charges and CT the Bank Accountor as a payment through the bank with bank transactions as a payment with “Spend Money”?.
You can only do it via Spend Money as you can’t use Journals for bank transactions.
Thank you. Much Appreciated.