Expense outstanding on the date of balance sheet is shown on ______

Income and Expenditure A/c

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Asset side of Balance Sheet

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Liabilities side of Balance Sheet

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Both Income and Expenditure A/c and to Balance Sheet

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Solution

The correct option is C
Liabilities side of Balance Sheet

Expense outstanding on the date of balance sheet is shown on both the income and expenditure account and on liabilities side of balance sheet.

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Similar questions

Q. Outstanding Expenses is shown on the _______ side of the balance sheet.

Q. Outstanding expenses are recorded on the __________ side of the balance sheet.

PRACTICAL PROBLEMS

(Outstanding Expenses and Prepaid Expenses)

From the following information supplied to you, prepare Income and Expenditure Account for the year ending on 31/03/2013 and Balance Sheet as on that date for Suryodaya Club, Nasik.

Balance Sheet as on 01/04/2012
Liabilities	Amount Rs	Assets	Amount Rs
Capital Fund	50,000	Land	60,000
Bank Overdraft	35,000	Outstanding Subscriptions	5,000
Outstanding Salary	2,000	Prepaid Insurance Premium	2,500
		Cash in Hand	9,500
		Furniture	10,000
	87,000		87,000

Receipts and Payments Account for the year ending 31.03.2013
Dr.					Cr.
Receipts	Amount Rs	Payments		Amount Rs
To Balance b/d	9,500	By Bank Overdraft (Repaid)		35,000
To Subscription	95,000	By Salary		12,500
To Admission Fees	7,500	By Insurance Premium		8,000
		By Interest		1,700
		By Miscellaneous Expenses		4,400
		By Furniture		20,000
		By Balance c/d
		Cash in Hand	5,400
		Cash at Bank	25,000	30,400
	1,12,000			1,12,000

Adjustments:

1) Subscriptions received, includes Rs 3,000 for 2011-2012 and Outstanding Subscriptions for 2012-2013 was Rs 8,000.

2) Salary Paid includes Rs 2,000 Paid for last year

3) On 31/03/2013, Prepaid Insurance Premium was Rs 3,000

4) Admissions Fees are to be capitalized.

5) Depreciate Furniture by Rs 2,000

Q. The prepaid expense is shown on the _______ side of the balance sheet.

Q. State whether the following statement are True or False.

Prepaid expenses are shown on the asset side of the Balance Sheet.

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Expense outstanding on the date of balance sheet is shown on ______

The correct option is C Liabilities side of Balance Sheet Expense outstanding on the date of balance sheet is shown on both the income and expenditure account and on liabilities side of balance sheet.

The correct option is C
Liabilities side of Balance Sheet

Expense outstanding on the date of balance sheet is shown on both the income and expenditure account and on liabilities side of balance sheet.