Mike Bill runs a second-hand jewellery business, which has a year-end on May 31st. Mike employs two assistants to help him run the business. The monthly salary for each assistant is 2,500. In the companys statement of financial position as at 31st May 2022 there was an accrued expense of 5,000 in relation to assistants salaries. During the accounting period ending on 31st May 2022, Mike paid his two assistants a total of 70,000 in relation to salary.

What is the accrued expense in relation to assistants salaries that will feature on the Statement of Financial Position of Mikes business as at 31st May 2021?

a. 5,000

b. 45,000

c. 15,000

d. 0 There will be no accrued expense in relation to assistants salaries in the Statement of Financial Position as at 31st May 2021.

e. 10,000