Carpenter Ltd Has 6 Employees, Who Are Each Paid $750

Carpenter Ltd has 6 employees, who are each paid $750 per week for a 5 day working week. Each employee is entitled to 8 days accumulating non-vesting sick leave per year.
At 1 July 2013 the accumulated untaken leave was 14 days in total. During the year ended 30 June 2014 a total of 50 days sick leave was taken, of which 12 days were unpaid leave.
Of the accumulated untaken leave at 30 June 2014 it is estimated that 75% of it will be taken during the following year.
The balance of the provision for sick leave at 30 June 2014 is:

A) $1350.
B) $3600.
C) $2700.
D) Nil, as the leave is non-vesting.

Correct Answer:

Verified

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