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?
- 4 Answers
- 4977 Views
- I also Faced
- E-Mail Answers
Answer Posted / sankar
The system we are following is Double entry system & in this
case the Expense incurred involves cash outflow. so, entered
in P&L alone. Whereas already reduces the cash balance in
Current asset in BS.
Now here as per Question the Outstanding Expense or Prepaid
Incomes were no yet paid or received. So, it must be
mentioned in P&L as well as BS. Then only the Both side of
BS will tally.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
What is Direct Debit
Expand---------OTMD
what is an advance against expenses
What are motive behind mergers And acquisitions?
Dear All, myself B.k Singh graduate with B.Com and PGDBM - Finance, I was worked with Service Company for 6 yrs.Now past 2yrs working with Real Estate,moreover I want to some course short term, plz guide me.
SOUTH ATLANTIC OIL AND GAS INC.is a fraud company
Why we reconcile our debtors? what steps we taken during reconciliation.
Paid office electricity charges Rs 15000/- and Ram partners residence electricity charges 1250 thr andhra bank cheque
Expand-------URM
What is the difference between Risk, Threat & Hazard?
my boss (Managing Partner of a firm) promoted along with his wife a private limited company. he and she spent some Rs. 75,000/- (approx) for the promotion of the company. i know that they usually fall under the head of preliminary expenses. but after receiving the certification of incorporation of the company how shall i repay them to the promoters i.e. what is the accounting entry in the books (initial books of accounts) for the expenditure incurred. they have kept in hand 5,00,000/- each to meet the expenses and they were allotted shares of equal to the amount. can i allot shares for a consideration of cash from and excluding the preliminary expenses. can i take cash towards the share application money (being the cash more than Rs. 20,000/-) as the company has not opened a bank account yet. please give me the detailed answer with journal entries that can be entered in tally. thank you.
If its is declared by auditor that business is not going concern that what journal entry will be pass?
how to do finalisation account ,pls tell me step by step ?
let me know the minimum Accounting Heads in an accounting system
My company's accountant use two different way to calculate Depreciation,one as per Companies Act and another rate for Income Tax calculation. Why we have to use two way to calculate it? Can we just use one way to calculate?
