Question

State any one adjustment​

Answer 1

Answer:

Outstanding Expenses

There are some expenses like salary, wages, rent etc which are incurred but remain unpaid at the end of the accounting period.

For Example – Wages amounting 5000 becomes due on 31st March but remains unpaid during the respected financial year. These wages are termed as outstanding wages. Such outstanding wages will be added in the wages appearing in the trading and profit and loss account and will also show as a liability in the balance sheet of an entity.