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WAEC Financial Accounting 2004 Question 10

Question 10

Accruals and Prepayments

Rent prepaid 1/01/2003 N600.00
Rent paid 31/12/2003 N3,000.00
Rent prepaid 31/12/2003 N400.00
Rent for 2003 amounted to

  1. A.N4,000
  2. B.N3,200
  3. C.N3,000
  4. D.N2,800
Show the answer and explanation

Answer: B (N3,200)

Explanation

600 + 3,000 − 400 = N3,200.