Cash Management - Help!

zippi
zippi Registered Posts: 182 Dedicated contributor ? ? ?
I have got an exam on Mondayfor this. Currently, revising from BPP book. I am going through BPP practice Assessment 1 task 1 section c. There are prepayments and accruals of office expense, van expense and rent of office. I understand van expense and office expense but confused with rent of office. It states a figure of £18000 in P & L account. Prepayments - rent of office b/d is £2000 which is bought down on debit side of T acct. and c/d is £3000 which is b/d on credit side of T Account. However, I am confused with figure of £18000 which I thought should be on credit side but the answer I £19000 which shows it should be credited to T Account, whereas the other 2. - van and office expense are debited. Completely Confused!!! Could someone kindly explain it logically to me.

Comments

  • zippi
    zippi Registered Posts: 182 Dedicated contributor ? ? ?
    Sorry figure of £18000 should be on debit side but credited on this occasion!!
  • zippi
    zippi Registered Posts: 182 Dedicated contributor ? ? ?
    Ok got it, my mistake! Perhaps stressing, it is the same as others.
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