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CBSE Class 11-commerce Answered

How will you treat the following items:    Receipt and Payment 31-12-2006 Receipts Rs. Payments Rs.     By Salaries:       2005 20,000     2006 2,80,000     2007 18,000         Additional Information:  i. Salaries outstanding on 31st December, 2005 Rs.25,000.  ii. Salaries outstanding on 31st December, 2006 Rs.45,000  iii. Salaries paid in advance on 31st December, 2005 Rs.10,000.        
Asked by Topperlearning User | 01 Jul, 2016, 03:14: PM
answered-by-expert Expert Answer

 Income and Expenditure Account for the year ended 31st December, 2006

 

Dr.

Cr.

Expenditure

 

Rs.

Income

Rs.

 To Salaries

2,80,000

 

 

 

Add: Salaries received in Advance (LY 2005)

10,000

 

 

 

 

 

 

 

 

Add: Outstanding (CY 2006)

40,000

 

 

 

 

 

3,30,000

 

 

 

 

 

 

 

 

 

 

 Balance Sheet as on 31st December, 2005

Liabilities

Rs.

Assets

Rs.

Salary outstanding

25,000

Salaries Prepaid

10,000

 

 

 Balance Sheet as on 31st December, 2006

 Liabilities

 

Rs. 

Assets

Rs. 

Salaries outstanding :

 

 

Salaries Prepaid

18,000

2005 (25,000 -20,000)

5,000

 

 

 

2006 (45,000-5,000)

40,000

45,000

 

 

 

 

 

Note:

Salaries outstanding as on 31st December, 2006 appearing on the Liabilities side of the Balance Sheet amounted at Rs. 45000. It includes salaries outstanding for the year 2005 Rs.5,000 (i.e., Rs.25,000- Rs.20,000) and salaries outstanding for the year 2006, amounted to only Rs. 40,000.

 

 

Answered by | 01 Jul, 2016, 05:14: PM
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CBSE 11-commerce - Accountancy Part II
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Asked by Topperlearning User | 01 Jul, 2016, 04:01: PM
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How will you treat the following items:    Receipt and Payment 31-12-2006 Receipts Rs. Payments Rs.     By Salaries:       2005 20,000     2006 2,80,000     2007 18,000         Additional Information:  i. Salaries outstanding on 31st December, 2005 Rs.25,000.  ii. Salaries outstanding on 31st December, 2006 Rs.45,000  iii. Salaries paid in advance on 31st December, 2005 Rs.10,000.        
Asked by Topperlearning User | 01 Jul, 2016, 03:14: PM
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Asked by Topperlearning User | 04 Jul, 2016, 08:16: AM
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