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?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
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