Select the amount of salary to be shown in the Income and Expenditure Account at the end of the current accounting year of a Not-for-Profit Organisation.
The salary paid during the current accounting year is ₹26,000, which includes two months' salary of the previous year and one month salary of the current year is still outstanding.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹24,000.
26,000 salary is of 13 months (11 months of this current year + 2 months of previous year).
Per month salary = 26,000/13
= ₹2,000
Salary credited to the income expenditure is 2,000 x 12
= ₹24,000 (1 month is outstanding)