Question

Salary payable for current year amount to Rs.8500 at the end of the year outstanding salaries amount to Rs.300. Salaries paid in advance last year relating to the current year amounted to Rs.500. Prepaid salaries for the next year amount to Rs.250. Total amount paid for salaries during the year is :

(A) Rs.7550
(B) Rs.7500
(C) Rs.7950
(D) Rs.6550​

Answer 1

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