Question

Please solve this 2 and 3 sum please......

Answer 1

question 2

asking for expense for 2016-17

paid amount - 66000

less advance salary - 7000

less outstanding salary - 9000

current period expense (2016-17). = 50000

whether books maintained on cash or mercantile basis

question 3

same rule they asking for current period expense, it doesn't matter whether cash or mercantile basis

interest paid during the year - 26000

add: accrued interest but not paid - 2600

less: outstanding interest payable - 6200

26000 + 2600 = 28600 - 6200 = 22400


I hope it will help u to understand logic of questions.