How much amount as Staff Salary A/c will be debited to Income & Expenditure A/c ?

Staff Salary paid (+)Salary paid in advance for the next year (-) Salary paid in advance in last year for current year

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Staff Salary paid (-)Salary paid in advance for the next year (+) Salary paid in advance in last year for current year

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Staff Salary paid (+)Salary paid in advance for the next year (+)Salary paid In advance in last year for current year

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Staff Salary paid (-)Salary paid in advance for the next year (-) Salary paid in advance in last year for current year

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Solution

The correct option is B Staff Salary paid (-)Salary paid in advance for the next year (+) Salary paid in advance in last year for current year
Salary paid to staff is divided into two parts, salary paid in advance for current and the previous year.

When salary account is prepared the salary the actual salary is added to salary paid in advance for previous year and deducting salary paid for the current year.

Salary paid in advance for current year is deducted because it is which related to next year and has to written off from this year's accounts.

Salary paid in advance for previous year has to be added because this salary which was paid last year but actually was related to this year.
$S a l a r y p a i d (+) s a l a r y p a i d i n a d v a n c e f o r p r e v i o u s y e a r (-) s a l a r y p a i d i n a d v a n c e f o r c u r r e n t y e a r$ .

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Similar questions

From the following information, show the salaries item in the Income and Expenditure Account for the year ending 31st March, 2015 and in the Balance Sheet as at 31st March, 2014 and 31st March, 2015 :

An Extract of Receipts and Payments Account for the year ending 31st March, 2015
$\begin{matrix} Receipts & Rs & Payments & Rs Salaries & 2, 00, 000 \end{matrix}$

Additional Information

(i) Salaries Outstanding on 31st March, 2014 18,000

(ii) Salaries Outstanding on 31st March, 2015 24,000

(iii) Salaries paid in advance on 31st March 2014 10,000

(iv) Salaries paid in advance on 31st March, 2015 15,000

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(i) Commenced business with cash Rs.80,000.

(ii) Paid rent in advance Rs.1,000.

(iii) Purchased goods for cash Rs.30,000 and credit Rs.20,000.

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(v) Paid Salary Rs.800 and Salary outstanding Rs.200.

Q. Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.
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