Examples for Outstanding Expenses - Rent due but not yet paid. This expense becomes outstanding to the company when, this has taken the benefit, but the related payment has not been made simultaneously. To perform accounting with accuracy, these expenses are required need to be realized whether they are paid or not.Īn Outstanding Expense is a type of expense that is due but has not been paid. The Outstanding Expense is represented on the liability side of the balance sheet of a business. The outstanding expense is a type of personal account which have a credit balance and is this is treated as a liability for the business firm. What are Outstanding Expenses in Accounting?

In this content of accounting, we will discuss these expenses known as the accounting expenses and check the examples, recording method and journal entry of these expenses. These expenses are accounted for at the end of the year or over some time to do accounting procedures with accuracy and also so that the business individuals get a fair image of how much they owe to the outsiders. In this case, the business is at the liability of paying these expenses. So, simply put through outstanding expenses in business means, expenses which is not yet paid. Meaning of ‘out’ ‘standing’ is something which is been left out, not yet done. Firstly, let us decode ‘Outstanding’ expenses.

Due to due from meaning