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
Incorrect AnswerRs26,400
Incorrect AnswerRs31,600
Incorrect AnswerExplanation:
- To calculate the salary to be debited to the Income and Expenditure Account, let's adjust the paid cash amount:
- Start with the cash paid salary: Rs30,000.
- Add the outstanding salary at the end of the current year: Rs3,000.
- Subtract the outstanding salary at the end of the previous year: Rs2,000.
- Subtract any salary paid in advance for the next year: Rs2,600.
- Calculations: Rs30,000 + Rs3,000 - Rs2,000 - Rs2,600 = Rs28,400.
- Option 1: Rs33,600 is incorrect due to incorrect adjustments.
- Option 2: Rs26,400 is incorrect, likely missing some necessary components.
- Option 3: Rs31,600 is incorrect due to incorrect balance calculations.
- Option 4: Rs28,400 is the correct calculation.
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By: santosh