Outstanding Expenses

Outstanding expenses are those expenses which have been incurred and consumed during an accounting period and are due to be paid, but are not paid. Examples include outstanding salary, outstanding rent, etc. Outstanding expenses are recorded in the books at the end of an accounting period to show true numbers of a business.

Outstanding expense is a personal account and is shown on the liability side of a balance sheet.


Expenses are amounts paid for goods or services purchased. According to the accrual concept of accounting, transactions are recorded in the books of accounts at the time of their occurrence and not when the actual cash or a cash equivalent is received or paid. Therefore, payments are not necessarily made immediately, they may be late or in advance. Outstanding expenses and prepaid expenses are both a result of this.


Journal Entry for Outstanding Expenses

 Expense A/C  Debit
   To Outstanding Expense A/C  Credit



Lite© – Learning Initiative Through Example(s)

Let’s assume that in March there were 30,000 due to be paid for salaries, which weren’t paid due to some reason. At the end of March the company will record this in their books of accounts with the following journal entry:

 Salaries A/C  30,000
   To Outstanding Salaries A/C  30,000


>Read Prepaid Expenses