LIABILITY | EXPENSE

LIABILITY:

These liability are those liability which have to pay by the proprietor for long time or sort time.

Liability are two type:

• Current Liability

These liability are those liability which have to pay by the proprietor for soft term to own business out sides investors, shares holders, soft term loan or creditors, etc.

• Fixed Liability

These liability are those liability which have to pay by the proprietor for long term to own business, partners, debenture or  long term loan.

EXPENSE:

These expenses are those expenses which have to spend by the proprietor for business activities.

These are two type:

• Direct expenses:

These expenses are those expenses which have to spend by the proprietor directly.

For examples:

1. Carriage - in & out word
2. Fright
3. Transport
4. Tax
5. Fuel
6. Wages
7. Posts and stamp
8. Rent, etc.

• Indirect expenses

These expenses are those expenses which have to spend by the proprietor indirectly for business purpose.

For examples:

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1. Advertisement
2. Books & Stationary
3. Business promotion
4. Staff welfare
5. Medical allowance
6. Provident fund
7. Daily allowance
8. Travels allowance
9. House rent allowance
10. Rent paid
11. Interest paid
12. Commission
13. Discount allowance, etc.