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


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

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.

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