When the owner writes a company check to pay the company's electric bill, the company’s books should reflect in its journal books is debit water and electrical expenses, and will credit cash in bank. The nature of the expenses is under debit recording while the cash or cash in bank under this situation is debit as well. If the expenses of a company will rise, then the amount should be debited. The utilities expense of the company rises in this situation thus it should be under the debit side. The corresponding transaction is there is a deduction of cash in the bank of the country thus cash in bank should be credited.
Water and Electrical Expense xx,xxx.xx
Cash in Bank xx,xxx.xx