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When oustanding expense is give in the TB and corresponding
expense is not then how will we the same?
Eg.: Outstaning salary 100 given in the TB and salary for
the month is not there to add oustanding with the same. In
this situation how will we treat the same. Only in profit &
loss account or in balance sheet or both or?
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Answer Posted / mudunoori
Shaan saab you didnt take proper care in preparing the
question.There are two types One TB without taking
provisions or adjustment entries and TB after taking
adjustment entries into consideration. All the adjustment
entries whether related to income or expenditure they will
be placed both in Trading Profit and loss a/c and Balance
Sheet.So be careful in posting question and Answer
Chavan and Kalyan you both without proper understanding
answered the question.So you both also take proper care as
I said above
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