Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Read the following data of a company and answer the question.
 
Public deposits-  ₹4,00,000
O/S Expenses-   ₹10,000
Calls in advance-   ₹25,000
Provision for employee benefits-   ₹20,000  (maturing within operating cycle of the company)
Provision for taxation-    ₹1,50,000

What is the total amount of other current liabilities?

Options:

₹25,000

₹10,000

₹25,000

₹35,000

Correct Answer:

₹35,000

Explanation:

The correct answer is option 4- ₹35,000.

Other current Liabilities = O/S expense + Calls in advance
                                     = 10,000 + 25,000
                                     = ₹35000