Question

Wages and salaries (For 10 months) 17580
what's the treatment of final accounts?

please explain your answer ​

Answer 1

Answer:

35,160 is the answer please make me in brainlist

Answer 2

Answer:

In the given question, Wages and Salaries (For 10 Months) 17580.

Two months provision i.e Outstanding Wages and Salaries 3516  must be created by debiting Wages and salaries A/c and crediting Ourstanding Wages and salaries A/C

Treatment of final accounts:

As per accounting standards, for every known loss / expenditure provision must be created. Therefore, a provision based on previous 10 months is made for balance 2 months (1758* 2months) 3516

Explanation:

Rent Per Month = ( 17580÷10 months) 1758 per month

Journal Entry for Adjustment:

Wages & Salaries A/c------------Dr          3516

         To O/s Wages & Salaries A/c                   3516

(Being provision for O/S wages & salaries created)