Question : From the following information find out the actual amount of expenditure to be shown in the Assets side of the closing Balance Sheet:
Expenses paid during the year 1,40,000
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: Expenses paid during the year 1,40,000
Option 2: Expenses outstanding at the end of the year 30,000
Option 3: Expenses prepaid at the beginning of the year 24,000
Option 4: Expenses prepaid at the end of the year 16,000
Correct Answer: Expenses prepaid at the end of the year 16,000
Solution :
Expenses prepaid at the end of the year 16,000 are assets for the NPO for the current year.
Hence, the correct option is 4.
