WAEC Accounting 2010 Paper

Concept:The balance sheet reports outstanding wages as a current liability at the reporting date.Explanation:At 30/6/08, the trader still owed wages of $\mathrm{Le}\,2,400$.This unpaid amount is the accrued wages to be shown in the balance sheet.The earlier $\mathrm{Le}\,2,000$ relates to the previous year, and the $\mathrm{Le}\,8,000$ paid affects the wages expense account, not the year-end liability.Therefore, the wages recorded in the balance sheet as at 30/6/08 are $\mathrm{Le}\,2,400$.Answer:$\mathrm{Le}\,2,400$, i.e. option A.