Question

From the following data relating to a firm, estimate the compensation of employees:

	(₹ in thousand)
(i) Wages and salaries	45
(ii) Commission paid to sales staff	15
(iii) Value of free medical facilities	5
(iv) Value of subsidised food (element of subsidy)	10
(v) Travel allowance (towards actual expenses)	25

Answer 1

To estimate the Compensation of Employees, we include:

Included items (₹ in thousands):

Wages and salaries = ₹ 45

Commission paid to sales staff = ₹ 15

Value of free medical facilities = ₹ 5

Value of subsidised food (element of subsidy) = ₹ 10

Excluded item (₹ in thousands):

Travel allowance (towards actual expenses) = ₹ 25

Compensation of employees:

= 45 + 15 + 5 + 10

= ₹ 75 thousand