[Example] Journal Entry for Outstanding Expenses with Example

 Welcome back to our blog today we are going to solve an example of an outstanding expenses journal entry because it is a common entry that can be found in every accounting book so if you are an accounting student then you should learn this type of entry.

Check here - Download  Simple Journal Entries

Outstanding Expenses Journal Entry

Outstanding expenses are those expenses that have been incurred but have not yet been paid so by recording these outstanding expenses you should use an adjusting journal entry.

In our article we add a simple Outstanding Expenses Journal Entry that can be helpful for you to understand the basics so let's start:

outstanding rent journal entry

it is a good outstanding expenses example that can give you an overview of how to make outstanding expenses entry.

Date	Account	Debit (INR)	Credit (INR)
2023-10-01	Rent Expense	5,000
2023-10-01	Outstanding Rent Payable		5,000

As you can see In this example you incurred 5,000 in rent expense but had yet to pay it. 

In this example, the first row recognizes the expense, whereas the second row is the "Outstanding Rent Payable" account to represent the liability for the unpaid rent. 

outstanding rent journal entry in the tally

Now let's see how to record rent entries in the tally:

• Open Tally and navigate to the company where you want to record the journal entry.

• Go to the Gateway of Tally.

• Select "Accounting Vouchers" from the Gateway of Tally menu.

• Choose "F7: Journal" to create a journal entry.

• Fill out the journal entry as follows:

Date: date of the transaction.

Debit: Select the "Rent Expense" or relevant expense accounts.

Enter the amount of the rent expense (5,000 in our example) in the Debit column.

Credit: Select the "Outstanding Rent Payable" account or the relevant liability account.

Enter the same amount in the Credit column (5,000).

• Now "Enter" to save the journal entry.

Conclusion

Here in this post, we add all related information about the outstanding expenses journal entry with examples so if you are an accounting student then you should read this post till the end.