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Question : Given salary expenses Rs. 40,000, Outstanding in the beginning of the year: Rs. 5,000 and outstanding at the end of the year Rs. 10,000. Cash outflow on salary will be - 

Option 1: Rs. 45,000

Option 2: Rs. 35000

Option 3: Rs. 55,000

Option 4: Rs. 15,000


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Rs. 35000


Solution : Cash outflow on salary will be -

Opening balance + Salary exp. during the year - Closing balance

5000 + 40000 - 10000 = Rs.35000

Hence the Correct answer is option 2.

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