This is a monetary amount that is paid against receiving of goods or services that have been offered by a particular party.

The various types are:

• Salaries
• Wages
• Rent
• Commission
• Interests
• Bills of various services (Gas, Electricity, Oil, Water, Telephone)
• Carriage on both outward and inward journey
• Customs and Freight
• Advertisements expenditure
• Interest on Bank Loan and Capital
• Legal charges
• Audit fees
• Drawings
• Discounts
• Bills of Discount
• Untoward incidents not covered by Insurance company
• Bad debts
• Insurance