The
expenses which have been incurred in the business but not yet paid are called
outstanding expenses. For example: Account payable, wages payable,
At the top of the accounting period, there is also expenses that have become due however haven't yet been paid. Expenses nevertheless to be paid or outstanding expenses for this amount ought to be charged against this period’s income. The extent to that the amount belongs to the currents year but due in the next year is called Outstanding Expenses.
Expenses that are incurred however not been got until the end of the accounting year square measure called accrued expenses or outstanding expenses.
For example,
Total salaries to be got the year were $10,000, but by the end of the year $1000 weren't paid and can be treated as outstanding salary.
Salaries a/c Dr xxx
To Outstanding salaries a/c xxx
(Being Salaries for the month due but not yet paid accounted.)
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