PRC-1 · Chapter 4 · Question 33 of 100
'Pinnacle Manufacturers' paid Rs. 450,000 for electricity during the financial year. At the start of the year, accrued electricity was Rs. 45,000, and at the end of the year, the accrued bill was Rs. 65,000. What is the total electricity expense for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 470,000
Explanation
Expense = Cash Paid (450,000) - Opening Accrual related to last year (45,000) + Closing Accrual related to this year (65,000) = Rs. 470,000.
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