Diffrence between out standing expenses & prepaid expences

[Former Member]

Hi Guru's

Can anybody help me. Diffrence between out standing expenses & prepaid expences .and give me examples also.

Thanks in Adavance

Kamala

[Former Member]

Hi

Check this link

http://www.futureaccountant.com/final-accounts-financial-accounting/study-notes/adjustments-outstand...

Regards

Radha

[Former Member]

Hi,

Outstanding expenses are the expenses which are payable like Salaries Payable, Travelling expenses payable etc. On the other hand prepaid expenses are the expenses which are paid for which the goods or the service yet to be received. For example insurance is always paid in advance.

Prepaid expense is an Asset and outstanding expenses are a liability in Balance Sheet. These need to be analyzed and properly recorded at year end for drawing up a Balance Sheet.

Thanks

Murali.