The total expenses on account of salary to be debited to Income and Expenditure A/c for the year 2016-17 was:

The correct option is 5,30,000.

Logical Reasoning & Step-by-Step Derivation:

1. Accrual Basis of Accounting:
The Income and Expenditure Account of a non-profit organization is prepared on an accrual basis. Under the accrual system, all expenses relating to the current accounting period (in this case, the financial year 2016-17) must be debited to this account, regardless of whether they have been paid in cash or are still unpaid (outstanding) at the end of the year.

2. Identification of Data:
In this problem, the figures from the financial records indicate:
- Salaries paid during the financial year 2016-17: 5,00,000
- Outstanding salaries (salaries due but not yet paid) at the end of the financial year 2016-17: 30,000

3. Calculation of Total Salary Expense:
To calculate the total salary expense attributable to the year 2016-17, we must add the outstanding salaries to the amount of salaries actually paid during the year:

$$\text{Total Salary Expense to be Debited}=\text{Salaries Paid during the Year}+\text{Outstanding Salaries at the End of the Year}$$

Substituting the values into the formula:

$$\text{Total Salary Expense}=\mathrm{5,00,000}+\mathrm{30,000}=\mathrm{5,30,000}$$

Therefore, the total expense on account of salary to be debited to the Income and Expenditure Account for the year 2016-17 is 5,30,000.