Question

explain the treatment of GST in the following cases: (a) outstanding expenses (b) prepaid expenses (c) income earned but not received (and) income received in advance

Answer 1

Explanation:

Outstanding Expenses

Sometimes in the normal course of business, an enterprise may have some expenses relating to which the payment is due at the end of the year. We know these expenses as Outstanding Expenses.

Wages, salary, rent, interest on the loan, etc. are examples of such expenses that may remain due at the end of the accounting year.