Which of the following statements is correct?
1
Salaries paid is shown on the credit side of the Profit and Loss Account but outstanding salaries (when given in additional information) is shown on the Liabilities side of the Balance Sheet and is added to salaries in the Profit and Loss Account.
2
Salaries paid is shown on the debit side of the Profit and Loss Account but outstanding salaries (when given in additional information) is shown on the Assets side of the Balance Sheet and is deducted from salaries in the Profit and Loss Account.
3
Salaries paid is shown on the debit side of the Profit and Loss Account but outstanding salaries (when given in additional information) is shown on the Assets side of the Balance Sheet and is added to salaries in the Profit and Loss Account.
4
Salaries paid is shown on the debit side of the Profit and Loss Account but outstanding salaries (when given in additional information) is shown on the Liabilities side of the Balance Sheet and is added to salaries in the Profit and Loss Account.