Question

Salary outstanding in the beginning of the year is Rs 10,000 and at the end of the year it is Rs 20,000, if the amount Debit to Income and Expenditure Account is Rs 1,00,000, what is the cash paid to Salary Account: *

Answer 1

Answer:

80000 is the salary of Current year

Answer 2

Answer:

Cash paid to Salary Account will be Rs. 90,000

Explanation:

                               Particulars                                                   Amount (Rs.)

• Amount Debited to Income and Expenditure Account    1,00,000

Add: - Outstanding Salary at the beginning of the year              10,000

less: - Outstanding Salary at the end of the year                       (20,000)

Cash Paid for Salaries at the end of the year                      Rs. 90,000

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