When do You Adjust the Amount of Outstanding Expenses?

We know that outstanding expenses are those expenses whose services, we have taken but we did not pay the cost of service. It is possible, there are lots of times when we do not pay on the time.

I can give the example of a college who pays his employees after 3 or 4 months. All his employees have right to get salary every month but College do not pay them. So, end of the month salary due but not paid is the example of outstanding expense. But it is not necessary to adjust the amount of outstanding expenses. But if we prepare financial statement every month for taking decisions, we will adjust the amount of outstanding expenses.

In this adjustment, we have to show its effect on our financial statement. Without adjustment, there will not be any effect on our financial statement. Outstanding expenses will increase the cost of business and decrease the income. It also increase our current liability. If we do not adjust outstanding expense at its proper time, we can not show it as current liability in the balance sheet and as the decrease in our total income. Without this adjustment, our current asset and net profit will be over-value.

So, Remember,

1. you can adjust the outstanding expenses at the end of your financial period or calendar period.
or

2. You can adjust the outstanding expenses when you will make the financial statements for decision making. You can make financial statement monthly or quarterly  So, you can adjust the outstanding expense also monthly and quarterly.

Related Resources 

» How to Do Adjustment in Cost and Financial A/cs
» How to Do a Negative Adjustment in Accounting
» How to Adjust Inventory Value in Accounting
» How to Calculate Adjusted Gross Income
» How to Do Adjustments in Financial Statements 

COMMENTS

Comments on this Website
.
Share above Content to Your Friends



Name

access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
false
ltr
item
Accounting Education: When do You Adjust the Amount of Outstanding Expenses?
When do You Adjust the Amount of Outstanding Expenses?
http://4.bp.blogspot.com/-WFpmULbNn18/VLnvrBckzFI/AAAAAAAAQ84/JYimEgihKpk/s1600/expense%2Bicon.PNG
http://4.bp.blogspot.com/-WFpmULbNn18/VLnvrBckzFI/AAAAAAAAQ84/JYimEgihKpk/s72-c/expense%2Bicon.PNG
Accounting Education
http://www.svtuition.org/2013/05/when-do-you-adjust-amount-of.html
http://www.svtuition.org/
http://www.svtuition.org/
http://www.svtuition.org/2013/05/when-do-you-adjust-amount-of.html
true
2410664366776677676
UTF-8
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock