How to make Outstanding Expense entry or book an expense to pay later

Created by Book Keeper Team, Modified on Tue, 22 Jul at 2:17 PM by Book Keeper Team

1. Entry when expense becomes due but not paid

Expense a/c Dr.
to Outstanding Expense Cr.

2. entry when Outstanding expense paid

Outstanding Expense Dr.
to cash/bank Cr.

Example:
1) Rent payable at 31st july 2017 - amount 30000

You need to create a Journal transactions for this:

31st july Rent payable Debit
Outstanding rent payable Credit

2) Payment voucher on 5-Aug-17 from Bank A/C==>Rent payable

5-Aug-17 Outstanding rent payable Debit
Bank Credit

RENT PAYABLE account will come under DIRECT EXPENSE.

OUTSTANDING RENT PAYABLE will come under CURRENT LIABILITIES