Accounting of expenses

In this section, we’ll explain the accounting of expenses that are reported in the income statement of an entity. By the end of this section, you will be able to differentiate revenue expenditure and capital expenditure. You will develop an understanding of various classifications of revenue expenditure used in the income statement. In addition, we will also look into the accounting of payroll and related withholding tax issues.

Following chapters are included in this section:

  1. Introduction to expenses
  2. Accrued expenses and prepaid expenses
  3. Types of expenses
  4. Allocation of expenses
  5. Introduction to payroll accounting
  6. Payroll tax deduction at source
  7. Example – Recording payroll expenses
  8. Outsourcing of payroll function