Question

Question: 37 of 100
X
Outstanding expenses are
A.
Expenses due but not paid
В.
Expenses not due but paid
C.
Expense forgot to show in Profit & Loss A/C
D.
None of the above​

Answer 1

Outstanding expenses are:

A. Expenses due but not paid

В. Expenses not due but paid

C. Expense forgot to show in Profit & Loss A/C

D. None of the above

Answer: A. Expenses due but not paid.

The expenses which are due, or have been incurred, but not paid during the year are called Outstanding or unpaid expenses.

The journal entry which is to be passed for the same:

Expenses A/c Dr.

To Outstanding Expenses A/c.

(Being amount of outstanding expenses transferred to expenses A/c)

For the adjustments of Outstanding expenses, the first effect is included in respective expenses A/c on Trading account/Profit & Loss account and second effect is to be shown on Liabilities side of Balance sheet.

Examples: Rent, Wages, Salary, etc.

Answer 2

Answer:

Option A

Explanation:

The expenses that are due but not paid till now are known as Outstanding expenses

Some examples of Outstanding expenses

1] Live in a house for rent

2] Buying a precious thing and pay it after few days

3] Salary of person

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