can any body explain what is outstanding expense?
Answers
Outstanding expenses are those expenses which have been incurred during the current accounting period and are due to be paid, however, the payment is not made. Such an item is to be treated as a payable for the business. Examples – Outstanding salary, outstanding rent, outstanding subscription, outstanding wages, etc
In banking and accounting, the outstanding balance is the amount of money owed, (or due), that remains in a deposit account. In bookkeeping, “balance” is difference between the sum of debit entries and the sum of credit entries entered into an account during a financial period.
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Answer: Those expenses which remain unpaid and yet to be paid at the end of the year are called outstanding expenses. These expenses arises when services has been received but their due amount have not been paid. It is treated as liability for the business because it is a representative personal account which represents account due.