Accrued or Outstanding Expenses Homework Help

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Being an accounting student it gets necessary to play with calculations and keep records of the expenses and revenue of the firm’s business. Accrued or outstanding business expenses are the ones that are important to be known. Sometimes the expenses are incurred but not due for the payment. These kinds of expenses are termed under the category of accrued expenses. The expenses incurred and due as well for the payment are called under the category of outstanding expenses. With our Accrued or outstanding Expenses homework Help students can materialize the differences in between these two topics. As we follow many case studies and examples, the understanding is provided from a professional point of view.

Introduction to Accrued or outstanding Expenses

 

It is the topic that requires separate enlightening over itself. Hence our Accrued or outstanding Expenses homework Help team delivers the short description for both of them. There is lot of expenses done for business developments. Some of them are not settled in cash at the end of the financial period. Similarly a few incomes are earned but are not received from the party. So, accrued incomes are such types of incomes that have been earned but yet not received by the termination of accounting period. These incomes are also called as outstanding incomes. It is not recognized as the account payable item.

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Characteristics of Accrued or outstanding Expenses

 

In our Accrued or outstanding Expenses homework Help, we tell our prolific writers to concentrate more on the information regarding the fundamental of the topic. This includes demonstration of characteristics.
i. In the profit and loss account, accrued income is added to the required and concerned income.
ii. Accrued incomes hold the position in the asset side of balance sheet and are shown as a distinguished item under current asset.

Example for Accrued or outstanding Expenses

 

Here our Accrued or outstanding Expenses homework Help team experts present the demonstration by a small examples. We have a complete faith over them because they have worked for years in the professional stream.
Example: the interest received over the investments done during the accounting period is Rs. 30,000. Interest that is incurred over the investment but not yet received is Rs. 15,000. So, the data entries required in this field are
Accrued interest A/C DR. Rs. 15000
To interest received A/C CR. Rs. 15000
Interest received A/C
DR.
Particulars Rs Particulars Rs
TO profit and loss account 30,000

30,000 By bank

By accrued interest 30,000

15000

45000

Accrued interest A/C
DR.
Particulars Rs Particulars Rs
To interest 15,000

15,000

By balance C/D 15,000

15,000

Profit and Loss account
DR.
Particulars Rs Particulars Rs
By interest 30,000
Add: accrued interest 15,000

45,000

Liabilities
Liabilities assets
Accrued interest 15,000
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