JAMB Principles of Accounts 2008 Question 28

Question 28

Manufacturing Accounts

The floor space occupied by manufacturing and administration departments in a company is 200 sqm and 300 sqm respectively. N20 000 rent incurred is shared using floor space occupied. How much is the rent chargeable to manufacturing?

  1. A.N 8000
  2. B.N 10 000
  3. C.N 12 000
  4. D.N 18 000
Show the answer and explanation

Answer: A (N 8000)

Explanation

Manufacturing share = 200/500 × 20 000 = ₦8 000.