Outstanding expenses

Some people are coming from non medical and medical in field of accounting . There can easily learn tally and some basic rules of accounting From any coaching institute but they do not know the accounting treatment of outstanding expenses in book of accounts . Then I am training of this point at this time .

First of all I am telling you that outstanding expenses are those expenses which are payable but not paid , so it is our duty to record it at the closing of financial year .Dear friends according to the accounting principals any expenses paid or payble is the expenses of business , so when we makes profit and loss account of business , it must be added in paid expense and you can make journal entry in tally.

Expenses account dr. xxxxx
To outstanding expense account xxxxx

This entry automatically adjust your final account , you need not change your final accounts in tally . This is facility to you in using tally

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