Question

Where Audit fees come in final account

Answer 1

Answer:

An unpaid audit fee, first, is added to Audit Fees Account and then the same is shown in liabilities side of balance sheet as outstanding expenses or expenses payable. Audit Fees is indirect expenses. Therefore, it will be shown in debit side of Profit and Loss Account.

Answer 2

It will come on the debit side of the profit and loss account.

Audit fees shown in the final accounts are the costs that are spent by the companies to get the company's financial statements officially audited by an auditor or public accounting firm. It is the amount that these professionals charge in return for their services. The audit fees are regarded as an expense or indirect expense by the company. When making the final accounts, expenses come on the debit side of the profit and loss account. So, it will come on the debit side of the profit and loss account as it is regarded as an expense.