answersLogoWhite

0


Best Answer

see outstanding expenses r those expenses that runpaid at the end of accounting period like salaries,rent so they all come under nominal accounts which is "debit all expenses and losses and credit all gains". since they r unpaid hence they must be credited....

User Avatar

Wiki User

15y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is nature of outstanding expense?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Why is outstanding expense is credited in outstanding expense account?

Because it is a liability for business


Is rent expense a liability?

rent is an expense while outstanding rent is a liability


What is the meaning of outstanding expenses?

it is an overdue expense or in some cases a big expense...


What would be the effect of outstanding expense on accounting equation?

As we know, in accounting and book-keeping, expenses are debited in order to cause a decrease in the owner's (or stockholders') equity. So in this case, we record outstanding expense as: ASSETS = LIABILITES + CAPITAL Nil = +(outst. expense) - (outstanding expense) Outstanding Expenses are added to Liabilities because it is business' CURRENT LIABILITY and deducted from CAPITAL because it causes a decrease in owner's equity. NOTE: At the time of payment we deduct it from Liabilities as well as from Cash ( or in JOURNAL ENTRY: we debit Outstanding Expense and credit Cash) ASSETS = LIABILITES + CAPITAL -outst. exp. = -outst. exp. + Nil


What is nature of Prepaid expense?

Asset


More about outstanding expense?

expenses which are to be made in future due to previous days expenses


What term is used to describe an expense that has not been paid or a revenue that has not been received?

Outstanding


Differnce between outstanding expenses and prepaid expenses?

prepaid expenses are paid in advance and they are called current assets.The outstanding expense is the unpaid money,still owed.


What is stock journal voucher?

In this voucher a user calculate only adjustment entry transaction are made like- outstanding expense,prepaid expense, interest on capital,etc .


What is the difference between outstanding expense and accrued expense?

I believe that Outstanding expense is an expense that has actually occured but not paid, but accrued expense is an expense which has been paid or may not be paid but the expense has not yet been accounted in books of accounts and hence, it is an estimated expense or an expense which is not yet been booked in our books and hence, we accrue the estimated expense in our books or we book the sum of actual expense and book it as an accrual for this period as there might be a case where the books have been closed for accounts payable but the books are still open for general ledger team to account the sum as an expense in the current period. The accrual will be normally reversed in the subsequent month and actual expenses will be booked. But in case of seasonal accounting the accruals are booked as a non-reversing entry in books and when the actual expense is known, the expense is booked and the accrual entry for the same will be reversed. Rajesh Rajagopalan


What are the examples of accrued expenses?

Accrued expense refers to an expense that has been incurred but not yet paid. Examples of accrued expense items might be interest that has accrued on an outstanding note that has not been paid, and taxes that have accrued but not yet been paid.


Nature of account of purchases return?

i think it should be treated as an ""Expense""