Question

in trial balance, salary of
Rs.60,000 was provided,
whereas at the year end
salary for two months is still
unpaid. Calculate the
amount of total salary to be
debited in Profit & Loss A/C
at the end of the year.
R$ 10.000
RS. 12.000
Rs.70,000
Rs.72,000
​

Answer 1

Answer:

60000 salary paid fir 10 months so one month salary is 60000/10=6000

Two months salary is outstanding for 6000×2=12000

amount debited to profit and loss account

60000+12000=72000

Answer 2

The amount of total salary to be debited in Profit & Loss A/C at the end of the year is ₹72000.

Explanation:

Given: Salary of 10 month provided ₹60000.

Find: The amount of Total salary at the end of year.

Solution:

• The expenses of an organization to be recognized and booked in the same year they arise, it does not matters if they are paid or not, this approach shows the conservatism principle, if it get recognized then it will be booked in the same financial year it is recognized.
• Total salary of 10 month = ₹60000
• Salary of each month = ₹60000/10 = ₹6000
• Salary of whole year = 6000*12 = ₹72000
• So, the salary of whole year that is ₹72000 to be deducted from profit and loss account whether they are paid or not.