when posting a utility bill you just paid, do you add it to the balance in the ledger or subtract it from the balance?

by patty poss
(walton ny)

when i pay my electric bill and post it to my utility expense ledger do i add the amount i paid to the expense balance or do i subtract it from the balance?


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Patty,

Thanks for visiting my site! When you're using a general ledger, and you pay your electric bill, you add the payment to your Utilities Expense balance, and subtract it from your cash balance.

So every month you are adding each months bills to the previous balance, and at the end of the year you have a grand total in your ledger.

If I can help with anything else, just let me know!

Kathy

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