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Salaries paid ₹25,000; Outstanding ₹1,500. P&L charge:

A₹25,000 paid figure
B₹23,500 net figure
C₹26,500 with outstanding
D₹27,000 grand total (typical)
Answer & Solution
Correct answer: C. ₹26,500 with outstanding
1. Salaries for the period include amounts due but not paid. 2. Outstanding ₹1,500 is added to ₹25,000. 3. P&L debit = ₹26,500; balance sheet shows ₹1,500 as liability. _Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.2 example_
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