Definition

Unpaid expenses

 Expenses incurred during the year but for which payment has not been made and will have to be made next year are called unpaid expenses, e.g., rent, rates, tuxes, electricity charges, audit fee, salaries, etc. The auditor should examine vouchers, receipts, invoices, demand notes, etc., to ascertain whether expenses ought to have been debited to the current year’s profit and loss account and whether any payment has been made.

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