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WAEC Financial Accounting 2021 Question 46

Question 46

Accruals and Prepayments

Use the following information to answer questions 46 and 47.
Monthly Rent payable: GH¢3,000
Rent paid on 01/01/2018: GH¢48,000
Rent expense for 2018 was

  1. A.GH¢84,000.
  2. B.GH¢48,000
  3. C.GH¢36,000
  4. D.GH¢12,000.
Show the answer and explanation

Answer: C (GH¢36,000)

Explanation

12 months × 3,000 = GH¢36,000.