What will be the accounting treatment of outstanding expenses in the Income and Expenditure A/c.
(A) Added in main or concerned head
(B) Subtracted from main head
(C) Shown in Balance-Sheet as Liability
(D) Will not be shown in Income and Expenditure A/c
(E) Shown in Receipt and Payment A/c only
Choose the correct answer from the options given below:
(
This question was previously asked in
Shift 11/06/2023 3:30 PM - 6:30 PM
A
(A) and (C) Only
B
(B) and (C) Only
C
(D) and (C) Only
D
(E) and (A) Only
Correct Answer
(A) and (C) Only
Detailed Explanation
A) Added in main or concerned head - Outstanding expenses are typically added to the respective expense head in the Income and Expenditure Account, reflecting that they are expenses that belong to the current accounting period.
(C) Shown in Balance-Sheet as Liability - Outstanding expenses are also shown in the balance sheet as a liability because they represent unpaid obligations as of the balance sheet date.
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