Salary paid in cash during the current year was Rs30 000 Outstanding salary at the end of previous y...........

Salary paid in cash during the current year was Rs30,000; Outstanding salary at the end of previous year was Rs2,000 and outstanding salary at the end of current year was Rs3,000. Salary paid in advance during current year for next year was Rs2,600. The amount debited to Income and Expenditure Account will be :

Rs33,600

Rs26,400

Rs31,600

Rs28,400

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Explanation:

- We begin with the salary paid in cash during the current year, which is Rs 30,000.

- Add the outstanding salary at the end of the current year, which is Rs 3,000, since it has not been paid yet but is an expense for the current year.

- Subtract the outstanding salary at the end of the previous year, Rs 2,000, as it pertains to the last year's expenses that were settled this year.

- Subtract the salary paid in advance for the next year, Rs 2,600, as it is a prepayment and not an expense for this year.

- The calculation becomes: Rs 30,000 + Rs 3,000 - Rs 2,000 - Rs 2,600 = Rs 28,400.

- Correct Answer: Option 4, Rs 28,400