Question

Salary paid in cash during the current year was ₹30,000; Outstanding salary at the end of previous year was ₹2,000 and outstanding salary at the end of current year was ₹3,000. Salary paid in advance during current year for next year was ₹2,600. The amount debited to Income and Expenditure Account will be ​

Answer 1

Answer:

calculation of the amount of salary debited to income and expenditure account

salary paid 30,000

less :- o/s of P. Y ( 2000)

paid in adv of NY (2600)

add:- o/s of C. Y 3000

AMOUNT TO BE

DEBITED 28,400

Answer 2

Answer:

The amount debited to the Income and Expenditure Account will be ​Rs $28400$.

Explanation:

The non-trading businesses create the income and expenditure account to assess whether there is an excess or a deficit of income over expenditures for a specific period of time.

Given :

Outstanding salary ( Previous Year ) = Rs $2000$

Outstanding salary ( Current Year )   = Rs $3000$

Salary ( Current Year ) = Rs $30000$

Advanced Salary ( Next Year ) = Rs $2600$

Dr                                                 Salary Account                                       Cr  

_______________________________________________________        

      Particular                       Rs                 Particular                          Rs

_______________________________________________________          

• To O/S ( P.Y )               $2000$             By Advanced Salary(P.Y)       $0$

________________________________________________________    

• To Income & Exp.

              Account                   x             Current Salary                        $30000$________________________________________________________    

• To Advanced

          Salary   (N. Y)             $2600$              By O/S (C.Y)                       $3000$

________________________________________________________Total :                                      $33000$                                                         $33000$

________________________________________________________    

         

       $2000+x+2600=33000$

$\implies x=28400$

Hence,  ​Rs $28400$ will be debited to the Income and Expenditure Account.

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