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WAEC Financial Accounting 1993 Question 49

Question 49

Accruals and Prepayments

Use the following information:
Rent paid 31/12/89: ₦4,000
Rent owing 1/1/89: ₦500
Rent owing 31/12/89: ₦300

Rent for 1989 amounts to

  1. A.₦4,500
  2. B.₦4,300
  3. C.₦4,000
  4. D.₦3,800
  5. E.₦3,500.
Show the answer and explanation

Answer: D (₦3,800)

Explanation

4,000 − 500 (last year's) + 300 (still owing) = ₦3,800.