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    Accounting Treatment (1) Outstanding Expenses: (Wages, Rent, Salaries Etc.) Entry

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    aparna_rajasekh1702
    This document discusses the accounting treatment for various outstanding items. Outstanding expenses are added to the relevant expense accounts in the trading account or profit and loss account. Income received in advance is credited to the profit and loss account by deducting from the respective income account, and shown as a liability. Accounts payable, bank overdrafts, short term loans, and bills payable are shown as liabilities on the balance sheet.

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    Accounting Treatment (1) Outstanding Expenses: (Wages, Rent, Salaries Etc.) Entry

    Uploaded by

    aparna_rajasekh1702
    21 views2 pages
    This document discusses the accounting treatment for various outstanding items. Outstanding expenses are added to the relevant expense accounts in the trading account or profit and loss account. Income received in advance is credited to the profit and loss account by deducting from the respective income account, and shown as a liability. Accounts payable, bank overdrafts, short term loans, and bills payable are shown as liabilities on the balance sheet.

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    This document discusses the accounting treatment for various outstanding items. Outstanding expenses are added to the relevant expense accounts in the trading account or profit and loss account. Income received in advance is credited to the profit and loss account by deducting from the respective income account, and shown as a liability. Accounts payable, bank overdrafts, short term loans, and bills payable are shown as liabilities on the balance sheet.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    21 views2 pages

    Accounting Treatment (1) Outstanding Expenses: (Wages, Rent, Salaries Etc.) Entry

    Uploaded by

    aparna_rajasekh1702
    This document discusses the accounting treatment for various outstanding items. Outstanding expenses are added to the relevant expense accounts in the trading account or profit and loss account. Income received in advance is credited to the profit and loss account by deducting from the respective income account, and shown as a liability. Accounts payable, bank overdrafts, short term loans, and bills payable are shown as liabilities on the balance sheet.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    ACCOUNTING TREATMENT

    (1) Outstanding Expenses: (Wages, Rent, Salaries etc.)


    Entry
    Respective Expenses A/c Dr
    To Respective outstanding expenses A/c
    Treatment
    i. If the outstanding is an item chargeable to Trading A/c, add the outstanding expenses
    with relevant expenses in the debit side of the Trading A/c.
    ii. If it is an item chargeable to Profit and Loss A/c, add the outstanding expenses to the
    relevant expenses in the debit side of the Profit and Loss A/c.
    (2) Income received in advance
    Entry:
    Respective Income A/c Dr
    To Respective Income
    received in advance A/c
    Adjustment :
    Credit side of Profit and Loss A/c by way of deduction from the respective income A/c.
    Liabilities side of Balance Sheet
    3)Accounts Payable
    Treatment
    Shown in Balance Sheet.
    4)Bank account overdraft
    Treatment
    Shown in Balance Sheet.
    5) Short Term Loans

    Treatment
    Shown in Balance Sheet.
    6)Bills Payable
    Treatment :
    Shown in Balance Sheet.

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