Kaplan - Accurals & Prepayments.

I need help. I dont know how to work out this question, could someone help me ?


Activity One.

Olwen commenced business on 1 may 20X0 and is charged rent at the rate of £6,000 Per annum. During The period to 31st December 20X0, He actually paid £3,400.

What should his charge in the profit and loss account for the period to 31 December 20X0 be in respect of rent ?

Thanks.

Rob =)

Comments

  • bozena
    bozena Settling In Nicely Registered Posts: 20
    From 1/5 - 31/12 = 8 months,
    £6,000 p.a./:12 months x 8 months = £4,000

    hope this help
  • Robert Ormrod
    Robert Ormrod New Member Registered Posts: 5
    Thanks..! Helps alot =)
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