Skip to content

CS Professional · CSR and Social Governance · Financial and Non-financial Reporting of Different Non-Corporate Entities

Sanjeevani Health Trust paid salaries of Rs 6,00,000 in 2025-26 per its Receipts and Payments Account. Salaries outstanding were Rs 40,000 at the beginning and Rs 70,000 at the end; salaries paid in advance at the end were Rs 10,000 (nil at start). It also purchased medical equipment of Rs 2,00,000 and charged depreciation of Rs 20,000. What total of these items is debited as expenditure in its Income and Expenditure Account?

The total is Rs 6,40,000. Salary expense is 6,00,000 less opening outstanding 40,000, plus closing outstanding 70,000, less prepaid 10,000, giving 6,20,000. Adding depreciation of 20,000 gives 6,40,000. The equipment purchase is capital expenditure and is excluded.

  1. ARs 6,40,000Correct
  2. BRs 6,50,000
  3. CRs 8,30,000
  4. DRs 8,20,000

Explanation

Salary expense = 6,00,000 - 40,000 + 70,000 - 10,000 = 6,20,000. Add depreciation 20,000 = 6,40,000. The equipment purchase is capital and is excluded. Rs 8,30,000 wrongly includes the equipment cost and ignores the prepayment adjustment.

Did you get it right without looking?

One question tells you little. A timed set on Financial and Non-financial Reporting of Different Non-Corporate Entities shows your real accuracy, how long you take and where you lose marks.

Practise Financial and Non-financial Reporting of Different Non-Corporate EntitiesFree diagnostic mock

More Financial and Non-financial Reporting of Different Non-Corporate Entities questions