Question

The following information is provided of M/s Raj Petro for the year enced on 31^st December 2018:

(i) Actual Salaries paid Rs. 1,02,000

(ii) Prepaid Salaries as on 31.12.2017 is Rs. 12.000

(ii) Prepaid Salaries as on 31.12.2018 is Rs. 6,000

(iv) Outstanding Salaries as on 31.12.2017 is Rs. 9,000

(v) Outstanding Salaries as on 31.12.2018 is Rs. 7,500

Calculate the amount of Salaries chargeable to Income and Expenditure account for the year ending on 31 December 2018.

1. Rs. 1,18,500
2. Rs. 1,06,500
3. Rs. 91,500
4. Rs. 82,500

Answer 1

Correct Answer - Option 2 : Rs. 1,06,500

Statement of Salaries for the year ended December 31, 2018

Particulars	Rs.
Amount paid for Actual Salaries	1,02,000
Add: Prepaid Salaries as on 31.12.2017	12,000
Less: Prepaid Salaries as on 31.12.2018	6,000
Less: Outstanding Salaries as on 31.12.2017	9,000
Add:  Outstanding Salaries as on 31.12.2018	7,500
Total	106500

Salaries chargeable to Income and Expenditure account = Rs. 1,06,500