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Sir Why expense payable not written in balance sheet but it is a liability
Answers (5)
Thread Starter
sai tExpense payable is not written in balance sheet of revised one expense payable -1,50,000
It is not appearing as we had prepared closing Balance sheet
Thread Starter
sai tBut fixed assets which are present in opening balance sheet appears in closing balance sheet
Outstanding expense were unrecorded in the P&L due to which profit was understated. In the P&L adjustment a/c the brought down balance is before adjustment of expenses. Hence instead of 1,50,000 we have debited P&L with 1,80,000 and simultaneously corrected the profit. Fixed assets also have been adjusted with depreciation and closing balance is appearing in balance sheet