Question

From the following data about a firm estimate the compensation of employees:

	(₹ in 1000)
(i) Commission paid to sales staff	12
(ii) Travelling allowance paid to staff towards actual expenses	18
(iii) Employer’s contribution to social security	15
(iv) Wages and salaries paid to staff	155
(v) Interest-free loan given to staff	20

Answer 1

To estimate the Compensation of Employees, we include:

Included items (₹ in 1000):

Commission paid to sales staff = ₹ 12

Employer’s contribution to social security = ₹ 15

Wages and salaries paid to staff = ₹ 155

Excluded items (₹ in 1000):

Travelling allowance towards actual expenses = ₹ 18

Interest-free loan given to staff = ₹ 20

Compensation of employees:

= 12 + 15 + 155

= ₹ 182 thousand