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When an expense is recognized (or recorded) during one accounting period, the payment of it may be delayed usually until the deadline. What is the
When an expense is recognized (or recorded) during one accounting period, the payment of it may be delayed usually until the deadline. What is the nature of this unpaid amount of an expense: and which side should record it? Athough ithas not been paid. it is still an expense; and it decreases assets. Thus, it is recorded in the Credit side. It (The unpaid amount appears in the Income Statement because unpald expense is still an expense. On the Income Statement, there is no side. Unpaid expense amount becomes a lability. Thus it should be recorded in the Credit side. Because the company did not pay the expense, the company has saved its expense amount. Thus, it is recorded as profit with no need to determine sides
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