In each of the following cases ascertain the amount to be charged as expenses in the statement

Question:

In each of the following cases ascertain the amount to be charged as expenses in the statement of profit and loss for the year 2016–17: 

1. Premises taken on rent on 1st August 2016 by paying a deposit of ₹ 10 million. Quarterly rent of ₹ 300,000 paid on 1st August and 1st November each. Rent due on 1st February not paid till 31st March 2017. 

2. Paid towards salaries to employees ₹ 60.30 million. It includes a sum of ₹ 4.85 million as advance to employees against salary. 

3. Debtors outstanding as on 31st March 2017 amounted to ₹ 305 million. Based upon the past trend the company estimates that 2% of the debtors will default on payment. 

4. Goods bought during the year 2015–16 amounting to ₹ 12.23 million were actually paid for in the year 2016–17. 

5. Special goods were ordered on 15th December 2015 with advance payment of ₹ 3 million. The same were received and consumed during 2016–17.

Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question
Question Posted: