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WAEC Financial Accounting 2006 Question 49

Question 49

Accruals and Prepayments

Rent accrued 1st January, 2005 D600
Rent paid in 2005 D11,300
Rent prepaid 31st December, 2005 D500
Rent expenses for the year 2005 is

  1. A.N11,400
  2. B.N11,300
  3. C.N11,200
  4. D.N10,200
Show the answer and explanation

Answer: D (N10,200)

Explanation

11,300 − 600 (for 2004) − 500 (for 2006) = 10,200.