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expenses is paid to collect revenue but payment is paid to collect services
well they are both related to each other and will usually come under one transaction which is the payment of expenses. the following entry will be passed when an expense is paid.
Dr Expenses
Cr cash
Expenses means which affect the profit or loss of business on the other hand payment means settlement of an account either fully or partially.
Under the accrual method of accounting, expenses are costs that have been used up or have been incurred in the process of earning revenues and/or operating a business. ... Interest on a loan is a daily expense even though all of the interest will be paid when the loan comes due in the next accounting period.
Expenses are expenditures. A cost that have been used up. Payments These are the amounts that have paid out. They may relates to purchase of tradable goods, purchase of assets, clearing of previous dues, loans to staff etc.
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