Question : From the following information, find out the actual amount of expenditure to be shown in Income and Expenditure A/c:
Expenses paid during the year 140,000
Expenses outstanding at the end of the year 30,000
Expenses prepaid at the beginning of the year 24,000
Expenses prepaid at the end of the year 16,000
Expenses outstanding at the beginning of the year 18,000
Option 1: Rs 1,60,000
Option 2: Rs 1,42,000
Option 3: Rs 2,40,000
Option 4: Rs 40,000
Correct Answer: Rs 1,60,000
Solution :
Expenses Paid during the year 1,40,000
(+) outstanding expenses 30,000 at the end of the year 1,70,000
(-) outstanding expenses at 18,000
at the beginning of the year 1,52,000
(-) Advance in the current year 16,000
1,36,000
(+) Advance in previous 24,000
Answer =
Rs. 1,60,000
Hence, the correct option is 1.
