Recording the Electricity Bill Journal Entry


Last Updated on March 18, 2024 by Qusai Ahmad

Welcome back to the Speak Accounting blog! Today, we’ll delve into the process of recording journal entries for electricity bills.


As an accountant in a company, one of your routine monthly tasks is documenting the electricity bill. This blog post aims to simplify the process for you.

Recording the Electricity Bill:

When the electricity bill arrives, record it by debiting the electricity expense and crediting the electricity company. Essentially, this means acknowledging that your company owes the electricity company the billed amount. The journal entry for this is:

  • Debit: Electricity Expense
  • Credit: Electricity Company

For a practical example, let’s consider the December 2023 electricity bill, as shown in the image below on Speak Accounting:

In this example, the December electricity bill amounts to $150. To record this bill:

  • Debit: Electricity Expense $150
  • Credit: Electricity Company $150

This constitutes our journal entry for recording the electricity bill.

Recording the Payment of The Electricity Bill:

When it’s time to pay the electricity bill, whether it’s a single bill or multiple bills, treat it like settling a credit balance with the electricity company. The general entry for paying the electricity company is:

  • Debit: Electricity Company $150
  • Credit: Bank $150

And now, you can update the electricity company account in your accounting system.

That wraps up the process for recording company electricity bills, and the same principles apply when recording water bills.

1 thought on “Recording the Electricity Bill Journal Entry”

  1. Thanks for this clear explanation! Recording electricity bills can indeed be a routine task, but it’s crucial for maintaining accurate financial records. By debiting the electricity expense and crediting the electricity company, we ensure that our accounts reflect the company’s liability accurately. The practical example using a $150 bill for December 2023 is especially helpful. This straightforward approach keeps our books in order and makes the end-of-month closing process smoother. Great tips from Speak Accounting!

Leave a Comment

Your email address will not be published. Required fields are marked *