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WAEC Financial Accounting 2000 Question 22

Question 22

Accruals and Prepayments

Rent owing as at 31st December 1998 N800. Rent paid up to 31st December 1998 N1,700. Rent owing as at 1st January 1998 N500
Rent charged to the Profit and Loss Account for the year 1998 is

  1. A.N2,000
  2. B.N1,700
  3. C.N1,400
  4. D.N1,300.
Show the answer and explanation

Answer: A (N2,000)

Explanation

Rent = paid 1,700 + owing at end 800 − owing at start 500 = N2,000.