Question
What is meant by Outstanding Expenses? Give its adjusting entry.
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Answer
Outstanding Expenses: These are the expenses which have been incurred during the year but have been left unpaid on the date of preparation of final accounts. In other words, the benefit of such expenses has been derived during the year but the payment of which has not yet been made.
Adjustment:
Adjustment:
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From the following balances taken from the books of Simmi and Vimmi Ltd. for the year ending March 31, 2017, calculate the gross profit.
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₹
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Closing stock
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2,50,000
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Net sales during the year.
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40,00,000
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Net purchases during the year.
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15,00,000
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Opening stock.
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15,00,000
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Direct expenses.
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80,000
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| ₹ | |
| Capital at the end of the year. | 5,00,000 |
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