Question
Distinguish between expenses and expenditure.
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Answer
Expense is the cost incurred in producing and selling goods and services. Example: cost of goods sold and the amount paid for salaries, rent, commission, etc. On the other hand, expenditure is a wider term which includes expenses also. Expenditure is the amount spent on acquiring assets, goods and services.
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2018
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March 4
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Purchased goods for ₹ 5,00,000 from Sunil Bros.
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March 7
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Goods returned to Sunil Bros. for ₹ 20,000
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March 10
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March 12
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Goods returned by Mehta & Co. for ₹ 30,000
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March 20
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Goods withdrawn by Proprietor for personal use ₹ 10,000
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March 25
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Goods distributed as free samples ₹ 5,000
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March 26
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Paid advertisement expenses by cheque ₹ 20,000
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March 31
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Payment made of balance amount of GST.
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