salaries paid for the current year amounted to 8500 at the end of the year outstanding salary for the previous year amounted to rupees 300 salaries paid in advance last year related to the current year amounted to rupees 500 .prepaid salary for the next year amounted to rupees 250.Total amount paid for salaries during the year is
Answers
AnswEr :
Current year salaries = 8500
Less : Opening outstanding. = 300
8200
Add : Opening Advance. = 500
8700
Less : Closing Advance. = 250
8450
∴ The total amount paid for salaries during the year i.e Rs.8450
Focus zone :
- Previous year outstanding is also known as opening outstanding
- Advance for last year is also know as opening advance
- Prepaid salary for next year is also known as closing advance
Given:
Salary Payable = Rs, 8500
outstanding salaries = Rs. 300
Salaries paid in advance = Rs. 500
Prepaid salaries = Rs. 250
To Find:
Total amount paid for salaries during the year
Solution:
Payable salary = Salary Payable + Prepaid Salary
= 8500 + 250
= 8750
Net payable salary = Payable salary - Outstanding Salary - Salaries paid in advance
= 8750 - 500 - 300
= 8750 - 800
= 7950
Answer:
Total amount paid for salaries during the year is Rs 7950