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Define Expenditures

Define Expenditures with suitable example?

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Expenditures are very significant from book keeping and accounting viewpoint. It is payment that is given by a person who gets either goods or services from other person. Assume that, Ram gets the electricity facility from state government electricity board. For such services, company sends him the electricity bill of Rs. 5000. This Rs. 5000 is expenses for Ram. When Ram does not pay it on its payment date, this will become his liability.

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