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I believe that Outstanding expense is an expense that has actually occured but not paid, but accrued expense is an expense which has been paid or may not be paid but the expense has not yet been accounted in books of accounts and hence, it is an estimated expense or an expense which is not yet been booked in our books and hence, we accrue the estimated expense in our books or we book the sum of actual expense and book it as an accrual for this period as there might be a case where the books have been closed for accounts payable but the books are still open for general ledger team to account the sum as an expense in the current period. The accrual will be normally reversed in the subsequent month and actual expenses will be booked. But in case of seasonal accounting the accruals are booked as a non-reversing entry in books and when the actual expense is known, the expense is booked and the accrual entry for the same will be reversed.
Rajesh Rajagopalan
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What is the journal entry to record accrued interest expense?
Debit Accrued Interest Expense Credit Accrued Interest Payable
What is the accounting entry for Accrued Expense?
Dr. Accrued Expense Cr. Cash or Cash in bank
What is the journal entry for payment of accrued expense?
debit accrued expensescredit cash / bank
Do accrued expense accounts have debit balance?
accrued expense has debit balance like all other expenses.
An accrued expense such as accrued wages can best be described as an amount?
not paid and currently matched with earnings.
What are the examples of accrued expenses?
Accrued expense refers to an expense that has been incurred but not yet paid. Examples of accrued expense items might be interest that has accrued on an outstanding note that has not been paid, and taxes that have accrued but not yet been paid.
How is an accrued expense adjusted using journal entries?
Adjustment of accrued expenses means to adjust the previously recorded accruals like prepaid expenses or outstanding liabilities etc.
What is the journal entry to record accrued interest expense?
Debit Accrued Interest Expense Credit Accrued Interest Payable
What is the accounting entry for Accrued Expense?
Dr. Accrued Expense Cr. Cash or Cash in bank
What is the journal entry for payment of accrued expense?
debit accrued expensescredit cash / bank
Do accrued expense accounts have debit balance?
accrued expense has debit balance like all other expenses.
Is accrued expense a financial liability?
If you are doing adjusting entries, an accrued expense will affect a balance sheet account (payable) and an income statement account (expense). Such as accrued interest at the end of year would be: Interest Expense (Debit) Interest Payable (Credit)
Why is outstanding expense is credited in outstanding expense account?
Because it is a liability for business
When does an accrued expense have to be paid?
An accrued expense is an accounting expense that is recognized in the books but has not yet been paid. It is usually a current expense. An accrued expense is paid when the due date for payment has reached, for example, wages are accounted for in the books before they are paid, but are usually paid either on a monthly or weekly basis depending on the policies of the company.
An accrued expense such as accrued wages can best be described as an amount?
not paid and currently matched with earnings.
What is the journal entry to set up an accrued expense?
Debit accrued expensesCredit expenses payable
Difference between outstanding expenses and unexpired expenses?
Outstanding expnese is that expense which is already incurred but amount is not paid while unexpired expenses are those expenses for which payment is made in advance but actually expenses are not yet incurred.
