Question : Mahadev's club paid a salary for the year ended 31st March 2020 amounted to Rs. 1,00,000. How much amount will be recorded in the 'Income and Expenditure Account' if the unpaid salary was Rs. 5,000 and the salary paid in advance was Rs. 2000 on 31st March 2020.
Option 1: Rs. 1,07,000
Option 2: Rs. 1,03,000
Option 3: Rs. 93,000
Option 4: 95,000
Correct Answer: Rs. 1,03,000
Solution :
Particulars | Amount |
Salary paid in 2019-20 | 100000 |
Add: Unpaid salary at 31st March 2020 | 5000 |
Less: Advance salary at 31st March 2020 | 2000 |
Amount recorded in Income and Expenditure A/c | 103000 |
Hence, the correct option is 2.