What Are Accrued Expenses / Outstanding Expenses - Definition - Meaning - Examples - Explanation
What Does Outstanding Expenses Mean Outstanding Expenses are those Expenses which are not paid by the businesses but the services or benefits against these have been received by the business during the accounting period. These are categorized as Current Liabilities on Balance Sheet . These are also known as Expenses Payable, Accrued Expenses (w hic h has bee n i ncurred but not yet recorded i n t he Books of Accounts ) , Accrued Lia bilities or Accruals . For Example, Salaries Payable , Wages Payable , Fees Payable, Electricity Bills Payable, Telephone Bills, etc. Outstanding Expenses Journal Entry / Accrued Expenses Journal Entry Suppose, the company accrued salaries of Rs. 500000 for its employees for the month, then following Adjusting Entry is passed in the Journal of business as shown below: ...