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WAEC Financial Accounting 1998 Question 35

Question 35

Accruals and Prepayments

Rent paid during 1995 was N2,000 while rent prepaid at 31st December, 1995 was N200. Rental expenses debited to Profit and Loss Account for 1995 was

  1. A.N2,400
  2. B.N2,200
  3. C.N2,000
  4. D.N1,800
  5. E.N200
Show the answer and explanation

Answer: D (N1,800)

Explanation

Expense = 2,000 paid − 200 prepaid for next year = N1,800.