PRC-1 · Chapter 4 · Question 14 of 100
A business had an opening accrued salaries balance of Rs. 15,000. During the year, salaries of Rs. 200,000 were paid in cash. The closing accrued salaries balance is Rs. 20,000. What is the total salaries expense for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 205,000
Explanation
Salaries expense is calculated as: Cash paid (200,000) - Opening accrual representing last year's expense (15,000) + Closing accrual representing this year's unpaid expense (20,000) = Rs. 205,000.
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