Question

Outsanding expenses are shown on liability side of balance sheet

Answer 1

Heya user ✨✨

⏺️ Outstanding expense are those expense which have been inccured but not paid during the current accounting period.


⏩ Treatment in accounting equation ⏬⏬

⏺️ Subtract from capital as it is an expense and will reduce profit for the current accounting period.

⏺️Make a new column on liability side in the name of outstanding expense as the amount is still to be paid.


✨ hope this helps you ✨