Natalia Alva In: Category - ExpenseHow to show outstanding expense in trial balance?outstanding expensetrial balance ShareFacebook1 AnswerVotedRecent Palak 2020-08-01T16:00:25+05:30Added an answer on August 1, 2020 at 4:00 pm Outstanding expenses such as outstanding salary, rent, wages, etc. are shown in the trial balance on the credit side as they are a liability for the business. I would like to explain this further with the help of an example which is as follows:ExampleThe trial balance of XYZ Ltd. shows the amount of rent as 7,000, however, rent amounting to 4,000 has not been paid yet for March.This outstanding rent of 4,000 is shown in the Trial balance as follows:Trial Balance as on 31st March, yyyyPARTICULARSDEBITCREDIT Debtors50,000Cash4,000Sales1,30,000Purchases90,000Bank Loan50,000Rent7,000Salary5,000Outstanding Rent4,000Creditors27,000Plant & Machinery40,000Investments15,000 2,11,0002,11,000Note:When the outstanding expenses are already shown in the Trial balance it means that the adjusting entry has already been recorded in the books of accounts.It shall be shown in the balance sheet of the company under current liabilities and no adjustment is required in the Profit and loss a/c.However, If outstanding expenses are not shown in the Trial balance then these expenses, shall be added to their respective account and recorded on the debit side in the Profit and loss a/c.Hope this helps.5Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?