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 amount of short-term provision?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹1,70,000.
Short term Provisions = Provision for employee benefits + Provision for taxation
= 20,000+ 1,50,000
= ₹1,70,000