unit 5

Q: the accurals in the list balance is 1,000 for the rent. the figure for rent in the bank summary is 15,000, includes 3,000 for the quarter starting 1 oct 2007
prepare the rent account, showing clearly the rent for the year ended 31 oct 2007
answer:
cash 15,000 b/d 1,000
rent for year ended 12,000
c/d 3,000x 2/3= 2,000
but there is only one month until the year ended, so should be 3,000x 1/3= 1,000, and rent for year ended should be 13,000,
where did i go wrong? please help

Comments

  • ema192
    ema192 Registered Posts: 107 ? ? ?
    I may be wrong but is this it??

    Rent A/c
    Dr Bank 15000
    Cr Balance B/d 1000
    Dr Carried down Balance 2000
    Cr P+L Rent for year 16000
    leaving a balance b/d cr of 2000
    ?????????????
  • meibaker
    meibaker Registered Posts: 481
    think you might be wrong, the answer should be:
    Dr cash 15,000 Cr b/d 1,000
    Cr rent for year ended 12,000
    c/d 3,000x 2/3= 2,000
    so the rent for the year ended 12,000.
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