How do you treat outstanding expenses?

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Solution

The remarkable cost is an individual record with a credit balance and is treated as an obligation for the business. It is entered on the liability side of the accounting report or balance sheet of a business. For accounting precision, these costs should be acknowledged if they are paid.

Also read: Outstanding Expenses

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State the meaning of:

(a) Outstanding expenses

(b) Prepaid expenses

(d) Accrued income

how will you deal with the following items in accounting equation ?

(a) outstanding expenses

(b) prepaid expenses

(c)any income

(d) drawing

(d)

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