Advanced Bookkeeping

Hi,
i'm hoping someone can help me, i'm really struggling to get my head around this exam and in need of some help.
Task 3 which I've attached along with the answers i'm unsure how they got to any of these would someone please be able to explain?
Thanks
Sophie
i'm hoping someone can help me, i'm really struggling to get my head around this exam and in need of some help.
Task 3 which I've attached along with the answers i'm unsure how they got to any of these would someone please be able to explain?
Thanks
Sophie
Comments
The prepayment was made at end of last year by Dr rental income (reducing capital) and Cr prepaid income (increasing liability)
At the start of the new accounting period we need to reverse the entry, ie we are doing the opposite entries, Cr income acc (increase capital), Dr prepaid income (reduce liability)
The accounting equation is as follows
Assets =liabilities + capital
None = decrease prepaid Income+increase revenue
0 = - 2340+2340
AAT Level 3. 2018
AAT Level 4.
Xero Certified Advisor
Accrued expenses are accounted for when they fall due not when payments are made and received and since only 1/3 of the expense bill is relevant to the accounting period ending 31march 20x7 we need to accrue for that. The rest goes in the next accounting year as normal
See attachment for the bookkeeping
AAT Level 3. 2018
AAT Level 4.
Xero Certified Advisor
Do you have any tips?
AAT Level 3. 2018
AAT Level 4.
Xero Certified Advisor