This course explains the concept of Outstanding Expenses and their adjusting entries in a simple and practical way. It is designed for Class 11, B.Com, and CA Foundation students who want to strengthen their understanding of accounting adjustments and final accounts.

Outstanding expenses are expenses that have been incurred during the accounting year but have not yet been paid. Even though the payment is pending, these expenses must still be recorded in the current year’s books to reflect the true financial position of the business.

In this lesson, students will learn how outstanding expenses are treated in accounting. They are added to the related expense in the Profit and Loss Account and shown as a liability in the Balance Sheet.

The course also explains step-by-step adjusting journal entries for outstanding expenses. Simple examples are used to help students clearly understand how and why these entries are passed at the end of the financial year.

Common mistakes made by students are also highlighted, along with tips to avoid them in exams. This improves accuracy and conceptual clarity.

By the end of this course, students will be able to confidently identify outstanding expenses and pass correct adjusting entries, building a strong foundation for final accounts and advanced accounting topics.