📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    White Ribbon Corporations reported salaries expense of

    Rs 200,000. The beginning balance of salaries payable was Rs 35,000 and the ending balance was Rs 10,000. How much cash did the company pay in salaries?
    A 225,000 Correct Answer Incorrect Answer
    B 235,000 Correct Answer Incorrect Answer
    C 190,000 Correct Answer Incorrect Answer
    D 200,000 Correct Answer Incorrect Answer
    E 175,000 Correct Answer Incorrect Answer

    Solution

      Beginning salary payable balance + salary expenses of the year – Ending salary expenses payable = cash paid in salaries in the year 35000 + 200000 – 10000 = 225000   Alternatively , Salary expenses of the year + decrease in salary payable                         200000 + (35000-10000) = 225000

    Practice Next
    More Banking System in India Questions
    ask-question