Journal Entry for Outstanding Expenses

Outstanding expenses are those expenses which are due but have not been paid, so for example if a company has not paid salary for the month of July than it is an outstanding expense for the month of July and company has to bring it into the books of accounts, outstanding expenses can be rent, insurance, salary, wages and so on. Given below is the journal entry which is passed for recording outstanding expenses into the books of accounts of a company –

Expenses account Dr

To Outstanding Expense account

In the above entry since expense is an outflow it is debited in the books of accounts, and outstanding expense being the liability for a company it is credited in the books of account. In the balance sheet the treatment for outstanding expenses will be to show outstanding expenses as current liabilities on the liability side of the balance sheet.

0 comments… add one

Leave a Comment

Related pages

swot stands forthe difference between monopoly and oligopolytraditional economy definition economicsdiversifiable riskadvantages of payback period methodthe balance in the prepaid rent accountdiminishing marginal utility exampledisadvantages of budgetingwhat is the income effect and substitution effectrecording unearned revenueoperating cycle in financedouble entry for loan repaymentfeatures of capitalist economyexample of indirect quotationdisadvantages of specialisationprivate goods examplesqip meaningmeaning of balance sheet in hindiwhat is a horizontal mergeradvantages and disadvantages of borrowing moneyjournal entry for credit salesdefine unsystematicmonopolistic competition definition economicscurrent liabilities definition in accountingvariable costing advantagescongeneric mergerswhat are disadvantages of globalizationaccounting for sales returnseps advantages and disadvantageswhat is the income effect and substitution effectmonopolistic competitive market structuredefine materiality conceptskimming pricing strategiesdifference between perfect competition and oligopolyadvantages of deflationpros and cons of autocratic leadershipadvantages of a capitalist economygaap full formdefinition centrally planned economydisadvantages of slumsfeatures of mixed economy systemwhat are inelastic goodscheque and draft differenceconglomerate strategyswot stands foradvantages of privatisationgatt full formdefine unsystematic riskdefinition of inferior goods in economicsweaknesses of capitalismnostro accountadvantages federalismfifo method definitionwhat are direct quotationslaw of diminishing marginalthe difference between accounts payable and accounts receivableexamples of unearned revenueimportance of capital budgeting pptduality accountingcapitalist economy vs socialist economyadvantages and disadvantages of cost accountinglimitations of zero based budgetingwhat is the definition of current liabilitieswhat is vertical analysis in accountingmonopolistic competition characteristicsmerits and demerits of globalisationan example of a vertical mergerdifference between a creditor and a debtorobjectives of demat accountexamples of conglomerate diversificationwhat are the advantages of autocratic leadershipexample of indirect quotationcharacteristics of mixed economywhat is the meaning of current liabilitiesmerits and demerits of globalization wikipedia