Salary paid for the year ended 31st March, 2010 amounted to ?75,000. How much amount will be recorded in Income and Expenditure Account in the following case?
Explanation:
- The Income and Expenditure Account records the expenses for the relevant accounting period.
- It's important to consider any prepaid expenses or outstanding liabilities. The balance should accurately reflect expenses for the year.
- To address the options:
1. ?75,700: Could imply there are outstanding liabilities from previous periods or prepayments affecting balance.
2. ?74,300: Might suggest there were prepayments for the following year, decreasing the present year's expenditure.
3. ?75,300: Indicates a minor adjustment, perhaps due to minor outstanding liabilities or prepayments.
4. ?74,700 : Suggests lower payment due to advance payments or fewer outstanding liabilities.
Correct Answer: Option 4 - ?74,700
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By: santosh