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LIABILITY | EXPENSE

By Pashupati Thakur

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:
full-width
  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.
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