ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    The following figures related to the rent and rates

    payable expense for a business in 2020-2021. Which is the correct figure for rent and rate expense in the profit and loss account for the year ended 31 March 2021? Rent paid in advance at 1 April 2020 Rs.5000 Rates in arreas at 1 April 2020 Rs.2000 Payments in 2020-21 Rs.35000 Prepaid rent at 31 March 2021 Rs.4000 Rent in arrears at 31 March 2021 Rs.6000
    A 38000 Correct Answer Incorrect Answer
    B 40000 Correct Answer Incorrect Answer
    C 42000 Correct Answer Incorrect Answer
    D 44000 Correct Answer Incorrect Answer
    E 46000 Correct Answer Incorrect Answer

    Solution

    Rent and rate expense in the profit and loss account = Payments + Rent paid in advance on 1 April 2020 – Rent prepaid on 31 March 2021 – Arrears on 1 April 2020 + Arrears on 31 March 2021 = 35000 +5000 -4000 -2000 +6000 = Rs.40000

    Practice Next
    More Alternate Sources of Finance Questions
    ask-question