In the year ended 31st March, 2018, salaries paid amounted to ₹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March ,2018 from the following additional information:

₹

Prepaid Salaries on 31st March, 2017 24,000

Prepaid Salaries on 31st March, 2018 12,000

Outstanding Salaries on 31st March, 2017 18,000

Outstanding Salaries on 31st March, 2018 15,000

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Solution

Statement of Salaries

for the year ended March 31, 2016

Particulars

Amount

(Rs)

Amount paid for Salaries

20,400

Add: Prepaid Salaries as on March 31, 2015

2,400

Less: Prepaid Salaries as on March 31, 2016

(1,200)

Less: Outstanding Salaries as on March 31, 2015

(1,800)

Add: Outstanding Salaries as on March 31, 2016

1,500

Salaries chargeable to Income and Expenditure Account

21,300

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Similar questions

Q. In the year ended 31st March, 2019, salaries paid amounted to ₹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March, 2019 from the following additional information:

	₹
Prepaid Salaries on 31st March, 2018	24,000
Prepaid Salaries on 31st March, 2019	12,000
Outstanding Salaries on 31st March, 2018	18,000
Outstanding Salaries on 31st March, 2019	15,000

Q. From the following Receipts and Payments Account of City Club and from the information supplied , prepare Income and Expenditure Account for the year ended 31st March , 2018 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March ,2018
Dr.				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Balance b/d		7,000	By Salaries	28,000
To Subscriptions:			By General Expenses	6,000
2016-17	5,000		By Electricity Charges	4,000
2017-18	20,000		By Books	10,000
2018-19	4,000	29,000	By Newspapers	8,000
To Rent		14,000	By Balance c/d	4,000
(Received from the Use of Hall)
To Profit from Entertainment		8,000
To Sale of Old Newspapers		2,000

		60,000		60,000

(a) The club has 50 members each paying an annual subscription of ₹ 500. Subscriptions Outstanding on 31st March,2017 were ₹ 6,000.
(b) On 31st March, 2018, Salries Outstanding amounted to ₹ 2,000 . Salaries paid in the year ended 31st March, 2018 included ₹ 6,000 for the year ended 31st March , 2017.
(c) On 1st April , 2017, the club owned Building valued at ₹ 2,00,000; Furniture ₹ 20,000 and Books ₹ 20,000.
(d) Provide depreciation on Furniture at 10%.

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

From the following Receipts and Payments Account of Sonic Club and from the given additional information, prepare the expenditure on account of salaries for the year ending 31st March, 2015 and show the salaries item in the Income and Expenditure Account and 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
Dr. Cr.
$\begin{matrix} Expenditure & Rs & Income & Rs By Salaries : 2013-14 & 20, 000 2014-15 & 2, 80, 000 2015-16 & 18, 000 \end{matrix}$

Additional Information Rs

(i) Salaries outstanding on 31st March, 2014 25,000

(ii) Salaries outstanding on 31st March, 2015 45,000

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

Q. From the following Receipts and Payments Account of Social Club and the information supplied, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March ,2019
Dr.				Cr.
Receipts		(₹)	Payments	(₹)
To Balance b/d		7,000	By Salaries	28,000
To Subscriptions:			By General Expenses	6,000
2017-18	5,000		By Electricity Charges	4,000
2018-19	20,000		By Books	10,000
2019-20	4,000	29,000	By Newspapers	8,000
To Hire of Ground		14,000	By Balance c/d	4,000
To Surplus from Entertainment Events		8,000
To Sale of Old Newspapers		2,000

		60,000		60,000

(a) The club has 50 members each paying an annual subscription of ₹ 500. Subscriptions Outstanding on 31st March,2018 were ₹ 6,000.
(b) On 31st March, 2019, Salaries Outstanding amounted to ₹ 2,000. Salaries paid in the year ended 31st March, 2019 included ₹ 6,000 for the year ended 31st March, 2018.
(c) On 1st April, 2018, the club owned Building valued at ₹ 2,00,000; Furniture ₹ 20,000 and Books ₹ 20,000.
(d) Provide depreciation on Furniture at 10%.

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	₹
Prepaid Salaries on 31st March, 2017	24,000
Prepaid Salaries on 31st March, 2018	12,000
Outstanding Salaries on 31st March, 2017	18,000
Outstanding Salaries on 31st March, 2018	15,000

Statement of Salaries for the year ended March 31, 2016
Particulars	Amount (Rs)
Amount paid for Salaries	20,400
Add: Prepaid Salaries as on March 31, 2015	2,400
Less: Prepaid Salaries as on March 31, 2016	(1,200)
Less: Outstanding Salaries as on March 31, 2015	(1,800)
Add: Outstanding Salaries as on March 31, 2016	1,500
Salaries chargeable to Income and Expenditure Account	21,300