JAMB Accounts Principles of Accounts 2015 Paper

Concept:Wages expense is the amount incurred for labour in the period, not just the amount actually paid.Use: $\text{Wages expense} = \text{Wages paid} + \text{Closing outstanding wages} - \text{Opening outstanding wages}$.Explanation:The business paid $N15{,}000$ for wages during the period.It still owes $N2{,}000$ at the end of the period, so this amount must be added to the expense for the period.No opening outstanding balance is shown in the given information, so nothing is subtracted.Therefore, $N15{,}000 + N2{,}000 = N17{,}000$.Answer:Option B: $N17{,}000$