Question

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

Answer 1

Statement of Salaries for the year ended March 31, 2019
Particulars	Amount (₹)
Amount paid for Salaries	2,04,000
Add: Prepaid Salaries as on March 31, 2018	24,000
Less: Prepaid Salaries as on March 31, 2019	(12,000)
Less: Outstanding Salaries as on March 31, 2018	(18,000)
Add: Outstanding Salaries as on March 31, 2019	15,000
Salaries chargeable to Income and Expenditure Account	2,13,000