hard20 pts · first answer countspayroll-controlspayroll-accounting

An accrual that was not reversed

In March, ₹6,00,000 of overtime was accrued. April payroll paid it and posted it to overtime expense, but the March accrual was not reversed. What is the effect?

A.April expense is overstated by ₹6,00,000 and the liability stays openB.March expense is understated by ₹6,00,000C.There is no effect at all, because cash was paid only onceD.The bank balance is overstated by ₹6,00,000 at April end

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An accrual that was not reversed

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