Osborne book Practice Assessment 2, task 3

Hi,

Can anyone please help with this one? The answer is £4,400.00, I know it's an accrual but I can't figure it out.

Answers

  • Krisso
    Krisso AATQB, AAT Licensed Bookkeeper Posts: 126
    Looking at the question I believe if you subtract the amounts paid through the year £4000 from the agreed new rate at Feb you are left with £1200.

    4/12ths of £1200 = £400 representing the increase in rent for 4 months (Sept to Dec)
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