Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

EXPENSES IN ACCOUNTING

VISHNU (NIL) (43 Points)

10 November 2022

when we do expenses we lose that money as well as the potential income that we could have earned but why do we don't consider that potential income as loss in accounting

Reply
Follow
Share

3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 10 November 2022

Because we get gain by way of service (or goods) in equal amount of expense.

Upgrade to CAclubindia Pro. Subscribe Now!

VISHNU (NIL) (43 Points)
Replied 10 November 2022

What if the gain we receive by incurring such expenses is less than the potential income then in such a case are we actually incurring a loss

Ahmed Malik (55 Points)
Replied 10 November 2022

Money as well as the potential income chinesebuffetnearmenow.net that we could have earned but why do we don't consider that potential income as loss in accounting.