Accounting question :Treatment of outstanding expenses : final a/c's.?

Question

On closing books of a/c's on 31/03/07, the following entry has been passed :
Electricity expenses dr. 500
To outstanding electricity expenses 500
( being outstanding elec. bills for the year 2006-07 provided for)

On 1/04/07, the above entry has been reversed :
outstanding elec. expenses Dr. 500
To elec. expenses a/c. 500
( being entry dated 31/03/07 reversed)

Further the following entry in respect of the above was passed on 30/05/07 when the elec. bill is actually paid on 30/05/07 :
Elec. expenses Dr. 500
To cash a/c. 500.
( being cash paid towards elec. bill )
Are the above entries correct? please explain in detail.
Also, provide with alternative treatment for the above transaction , if any......
Thanx

Answer 1

The entry on 31/3/07 is correct, but why did you reverse them on 1/4? You could have just left the entry there until 30/5 when you paid the amt. Then on 30/5, your entry would be :
Dr Outstanding electricity expenses 500
Cr Cash 500