K Ltd. signed an agreement with its labour union on 20 th October, 2023 to increase wages from 1 st January, 2023. In this case, the additional wages payable from 1 st January to 31 st March, 2023:

CS Executive · Corporate and Management Accounting · PYQS · December 2023
K Ltd. signed an agreement with its labour union on 20 th October, 2023 to increase wages from 1 st January, 2023. In this case, the additional wages payable from 1 st January to 31 st March, 2023:
(A) Should be shown by adding with wages of the accounting year 2023-24 in the Profit and Loss Account of the accounting year 2023-24.
(B) Should be shown separately in the Profit and Loss Account of the accounting year 2023-24
(C) Should be shown in the form of a Note under the Profit and Loss Account of the accounting year 2023-24
(D) Need not be shown as an item in the Profit and Loss Account and Notes

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Accounting

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