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Question : During the year 2018-2019, salaries paid amounted to Rs 2,40,000. From the following information, show the salaries item in the Income and Expenditure Account for the year ending 31st March, 2019.

1. Salaries outstanding on March 31st, 2018                   Rs 20,000

2. Salaries outstanding on March 31st, 2019                   Rs 25,000

3. Salaries paid in advance on 31st March, 2018             Rs 16,000

4. Salaries paid in advance on 31st March, 2019             Rs 12,000

Option 1: Rs 2,76,000

Option 2: RS 2,49,000

Option 3: Rs 2,51,000

Option 4: Rs 3,00,000


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: RS 2,49,000


Solution : Salaries paid amounted                                           =      Rs 2,40,000
(-) Salaries outstanding on March 31st, 2018          =       (Rs 20,000)

(+) Salaries outstanding on March 31st, 2019         =         Rs 25,000

(+) Salaries paid in advance on 31st March, 2018  =          Rs 16,000

(-) Salaries paid in advance on 31st March, 2019   =        (Rs 12,000)
 Amount in Income & Expenditure A/c                     =       Rs.2,49,000
Hence, the correct option is 2.

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