Question

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

• A. Staff Salary paid (+)Salary paid in advance for the next year (-) Salary paid in advance in last year for current year
• B. Staff Salary paid (-)Salary paid in advance for the next year (+) Salary paid in advance in last year for current year
• C. Staff Salary paid (+)Salary paid in advance for the next year (+)Salary paid In advance in last year for current year
• D. Staff Salary paid (-)Salary paid in advance for the next year (-) Salary paid in advance in last year for current year

Answer 1

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.

$Salarypaid(+)salarypaidinadvanceforpreviousyear(-)salarypaidinadvanceforcurrentyear$.