Creditor for expense.
This query is : Resolved
16 October 2021
What is the difference between creditor for purchase and creditor for expenses in balance sheet.?
Thank you
Thank you
16 October 2021
Same as the difference between Purchase & Expense.
Purchases usually refers in business to goods or possibly services that are to be sold on or used directly in production of the business outputs
Whereas expenses refers to other business costs such as wages, overheads, administration and financial costs, that are necessary but not directly related to the output.
Thus supplier of these goods or services related to purchase are purchase creditors. While supplier of services related to expenses are creditors of expenses.
Purchases usually refers in business to goods or possibly services that are to be sold on or used directly in production of the business outputs
Whereas expenses refers to other business costs such as wages, overheads, administration and financial costs, that are necessary but not directly related to the output.
Thus supplier of these goods or services related to purchase are purchase creditors. While supplier of services related to expenses are creditors of expenses.
16 October 2021
Thanx Sir. It means can we say that Outstanding expenses are same as creditor for expenses?
16 October 2021
Yes, it can be taken as accrued expenses payable to the creditors.
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