CA Foundation Exam > CA Foundation Questions > Salaries due for the month of March will appe...
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Salaries due for the month of March will appear
- a)On the receipt side of the cash book
- b)On the payment side of the cash book
- c)As a contra entry
- d)Nowhere in the cash book
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Salaries due for the month of March will appeara)On the receipt side o...
Explanation:
Salaries due for the month of March are not recorded in the cash book because they are not paid yet. Salaries are considered as an expense for the business, which is recorded in the income statement or profit and loss account. The cash book records all cash and bank transactions of a business, which includes cash receipts and cash payments.
The following points explain why salaries due for the month of March will not appear in the cash book:
1. Definition of Cash Book: The cash book is a book of original entry that records all cash and bank transactions of a business. Salaries due for the month of March are not cash transactions, as they are not paid yet.
2. Timing of Salaries: Salaries are usually paid at the end of the month or after the end of the month. As such, the salaries due for the month of March will not be paid until the end of March or the beginning of April. Therefore, they will not appear in the cash book for the month of March.
3. Accrual Accounting: Accrual accounting is a method of accounting where revenues and expenses are recognized when they are earned or incurred, regardless of when cash is received or paid. Salaries due for the month of March are considered as an expense for the business, which is recorded in the income statement or profit and loss account, not in the cash book.
In conclusion, salaries due for the month of March will not appear in the cash book because they are not cash transactions and are not paid yet. They are recorded as an expense in the income statement or profit and loss account.
Salaries due for the month of March are not recorded in the cash book because they are not paid yet. Salaries are considered as an expense for the business, which is recorded in the income statement or profit and loss account. The cash book records all cash and bank transactions of a business, which includes cash receipts and cash payments.
The following points explain why salaries due for the month of March will not appear in the cash book:
1. Definition of Cash Book: The cash book is a book of original entry that records all cash and bank transactions of a business. Salaries due for the month of March are not cash transactions, as they are not paid yet.
2. Timing of Salaries: Salaries are usually paid at the end of the month or after the end of the month. As such, the salaries due for the month of March will not be paid until the end of March or the beginning of April. Therefore, they will not appear in the cash book for the month of March.
3. Accrual Accounting: Accrual accounting is a method of accounting where revenues and expenses are recognized when they are earned or incurred, regardless of when cash is received or paid. Salaries due for the month of March are considered as an expense for the business, which is recorded in the income statement or profit and loss account, not in the cash book.
In conclusion, salaries due for the month of March will not appear in the cash book because they are not cash transactions and are not paid yet. They are recorded as an expense in the income statement or profit and loss account.
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Community Answer
Salaries due for the month of March will appeara)On the receipt side o...
Bcoz it's not pay by cash it's outstanding it's show on liabilities side of the balance sheet
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Salaries due for the month of March will appeara)On the receipt side of the cash bookb)On the payment side of the cash bookc)As a contra entryd)Nowhere in the cash bookCorrect answer is option 'D'. Can you explain this answer?
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Salaries due for the month of March will appeara)On the receipt side of the cash bookb)On the payment side of the cash bookc)As a contra entryd)Nowhere in the cash bookCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Salaries due for the month of March will appeara)On the receipt side of the cash bookb)On the payment side of the cash bookc)As a contra entryd)Nowhere in the cash bookCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Salaries due for the month of March will appeara)On the receipt side of the cash bookb)On the payment side of the cash bookc)As a contra entryd)Nowhere in the cash bookCorrect answer is option 'D'. Can you explain this answer?.
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