Answer Posted / rajaneeshkeloth

Salaries A/c Dr
To outstanding salaries A/c
(being salary due)


When it paid

outstanding salaries A/c Dr
To cash A/c
explanation; salary is an expence, all expences in an
accounting year should be brought in to account, out
standig salary is current liability so it should be
credited, when it is paid our liability decreases so it
shou be debited ,in addition to outstanding salaries a/c
can be closed bypassing the second entry

sir i want aao lic exam model question paper

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Is it possible to list only a portion of Equity Shares leaving the balance as unlisted?

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Occasionally it is said that issuing convertible bonds is better than issuing stock when the firms shares are undervalued. Suppose that the financial manager of Decent Furniture Company does in fact have inside information indicating that the decent stock price is too low. Decent furniture earnings will in fact be higher than investor’s expectations. Suppose further that the inside information cannot be released without giving away a valuable competitive secret. Clearly, selling shares at the present low price would harm Decent’s existing shareholders. Will they also lose if convertible bonds are issued? If they do lose in this case, is the loss more or less than it would be if common stock is issued? Now suppose that investors forecast earnings accurately, but still under value the stock because they overestimate Decent’s actual business risk. Does this change your answer to the questions posed in the preceding paragraph? Explain.

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