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Question : In the year 2020-21, salaries paid amounted to Rs.1,20,000. Find the amount to be debited to Income and Expenditure Account for the year ending 31st march 2021 after considering the following information:

Particulars Amount
Outstanding Salaries on 31-3-2020 9000
Outstanding Salaries on 31-3-2021 13500
Prepaid salaries on 31-3-2020 5400
Prepaid salaries on 31-3-2021 4200

Option 1: Rs. 1,29,000

Option 2: Rs. 1,14,300

Option 3: Rs. 1,25,700

Option 4: Rs. 1,38,900


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Rs. 1,25,700


Solution :

Particulars Amount
Salary paid in 2020-21 120000
Add: Unpaid salary on 31-3-2021 13500
Add: Advance salary on 31-3-2020 5400
Less: Unpaid Salary on 31-3-2020 9000
Less: Advance Salary on 31-3-2021 4200
Amount recorded in Income and Expenditure A/c 125700

Hence, the correct option is 3.

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Question : What amount will be credited to the income and expenditure account for the year ending 31st march 2022 on the basis of the following information:

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