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WAEC Financial Accounting 2012 Question 25

Question 25

Accruals and Prepayments

Rent accrued in 2009 was D140. In 2010, D900 was paid while D160 was outstanding. Rent for 2010 was

  1. A.D1,200
  2. B.D1,060
  3. C.D920
  4. D.D880
Show the answer and explanation

Answer: C (D920)

Explanation

Of the D900 paid, D140 settled 2009 rent, leaving D760 for 2010. Add the D160 still owing: 760 + 160 = D920.