Outstanding expenses and Provision for any expense will
come under liability side...?
Though it is basic question, it is to ensure the answer.
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Answer Posted / sudhansu dash
Outstanding expenses is a libility for the company which
has to pay in future date similary provision is also a
libility which company will make face the future expenses.
Outstanding expenses like, Telephone bill or elec. bill.
ect.
Provision for expenses like, we have a dispute regarding
telephone bill or salary payment etc. most of the time
these amount are payable amounts.
Both are the same in nature therefore we have to consider
this as Libility to the company or libility side of the
Balance Sheet.
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