Home › CA Foundation › accounting › Financial Statements of Not-for-Profit Organisations › Salaries paid ₹23,000; opening O/S ₹1,400; openi…
Salaries paid ₹23,000; opening O/S ₹1,400; opening prepaid ₹400; closing O/S ₹1,800; closing prepaid ₹600. I&E debit:
A₹23,000 paid only
B₹24,200 with both adj
C₹23,200 net adjusted
D₹22,800 net adjusted
Answer & Solution
Correct answer: C. ₹23,200 net adjusted
1. Start with cash paid ₹23,000.
2. Add closing O/S ₹1,800; less closing prepaid ₹600.
3. Reverse opening O/S ₹1,400; add opening prepaid ₹400.
4. = 23,000 + 1,800 − 600 − 1,400 + 400 = ₹23,200.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", Illustration 3_
Related questions
Treatment of legacy donation received specifically for a charitable activity:Government grant for purchase of equipment ₹1,00,000 received and used to buy equipment coEndowment fund of ₹2,00,000 is set up. Income from this fund (interest received) ₹15,000. NPO incurs ₹15,000 on books for library. These books are added to:Why is R&P alone insufficient for NPO performance assessment?Subscription received during year includes ₹4,000 for next year. I&E should include:Honorarium of ₹10,000 paid to a speaker is treated as:Stationery purchased ₹8,000; opening stock ₹2,000; closing stock ₹3,000. I&E debit: