Question 46
Accruals and PrepaymentsUse the following information to answer questions 45 and 46.
On 1/7/07, a trader owed wages of Le 2,000. During the year ended 30/6/08, wages of Le 2,400 were owed and Le 8,000 were paid.
Wages recorded in the balance sheet as at 30/6/08 is
- A.Le 8,000
- B.Le 6,000
- C.Le 2,400
- D.Le 2,000
Show the answer and explanation
Answer: C (Le 2,400)
Explanation
The wages still owed at the year end, Le 2,400, are shown as a current liability.