Manish has paid salaries of ₹ 1,50,000 for the year ended 31st March, 2025. Salaries include ₹ 20,000 paid in advance for the year ending 31st March, 2026

Manish has paid salaries of ₹ 1,50,000 for the year ended 31st March, 2025. Salaries include ₹ 20,000 paid in advance for the year ending 31st March, 2026. Show how it will be shown in the Profit & Loss Account and the Balance Sheet.

[Ans.: Amount to be shown in the Profit & Loss Account – ₹ 1,30,000; Assets side of the Balance Sheet as Prepaid Salaries – ₹ 20,000.]