What is Expenses in Tally?
What is expenses and losses in Tally? Expenditure is a type of expenditure which a company or an individual does with the aim of earning profit, these expenditure can be direct and can also be indirect, Expenditure is always the money spent for the purpose of making profit.
What is Losses in Tally?
The term loss is a decrease in the value of something. Loss is always unwanted. Loss occurs when the cost of your item is received less than the cost price. Let me explain you with the example of rental. That you have spent more on a building but its rent is coming less then it is a loss. or a company sells any of its assets for less than the cost price of its machinery.
Example of Expense in Tally Accounting
There are 2 types of expenses for running the company, direct expenses and indirect expenses and on the basis of these, the company finds out the net profit or net loss.
Direct And Indirect Expenses list
|Direct Expenses||Indirect Expenses|
|Carriage||Repair & Maintenance|
|Direct Labour||Rent Expenses|
|Customer service||Interest Expenses|
|Factory Duty||Postage and Corior|
|Factory Rent||Bad Debts|
|Custom duty of import||Staff Welfare|
Example of Losses in Tally
Loss is a type of unwanted loss that a person or company has to bear. of which there are many types
List of Losses in Tally
1. Damage by fire:- If the company catches fire in any way and whatever is burnt in it, it is damaged.
2. Loss by theft :- Theft of goods is also a kind of loss for the company.
3. Assets Loss :- Selling of fixed assets taken by a company for more money for less money.
4. What are capital losses ;- Capital loss is the loss when the asset or investment gains value less than the purchase price, if you bought the asset for 200000/- and sold it for 150000/- then there is a capital loss of 50000 .
What is the difference between expense and loss?
Expenses and losses in tally always seem alike but they are not related to each other. Expenditure is done for the purpose of earning income. Same loss is a kind of unwanted loss that a company has to bear. Expenses include direct expenses and indirect expenses. Whereas in losses all those losses come which cause loss to the company. The company spends many times to earn profit but sometimes the loss occurs.