Match the following by assuming the Current year 2020-2021.
| List 1 | List 2 |
| A) Salary paid during the year 50,000. Outstanding salary 31-03-2021 is 10,000. Salary shown in income & expenditure is..... |
I) ₹3,000 |
| B) Annual insurance premium is paid 12,000 on 1st July every year. Prepaid insurance as on 31-03-2021 is....... |
II) ₹10,000 |
| C) On 1-02-2021 rent paid is 30,000 for 3 months. Rent to be shown in income and expenditure account is...... |
III) ₹20,000 |
| D) On 01-02-2021 rent paid is 30,000 for 3 months. Prepaid rent is......... |
IV) ₹60,000 |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- A-IV, B- I, C-III, D-II.
| List 1 | List 2 |
| A) Salary paid during the year 50,000. Outstanding salary 31-03-2021 is 10,000. Salary shown in income & expenditure is..... |
IV) ₹60,000 |
| B) Annual insurance premium is paid 12,000 on 1st July every year. Prepaid insurance as on 31-03-2021 is....... |
I) ₹3,000 |
| C) On 1-02-2021 rent paid is 30,000 for 3 months. Rent to be shown in income and expenditure account is...... |
III) ₹20,000 |
| D) On 01-02-2021 rent paid is 30,000 for 3 months. Prepaid rent is......... |
II) ₹10,000 |
A) Salary paid during the year = 50,000
Add: O/s salary = 10,000
Salary shown in I & E A/c = 60,000
B) Annual insurance is 12,000
Per month insurance is 12,000/12 = 1,000
Prepaid insurance is 12,000-9,000 = ₹3,000
C) Rent of 3 month is 30,000 paid on 1-02-2021
Per month rent is 30,000/3 = 10,000
Rent shown in I & E A/c is 10,000 X 2 = 20,000
D) Rent of 3 month is 30,000 paid on 1-02-2021
Per month rent is 30,000/3 = 10,000
Prepaid rent is 10,000