AAT level 3 synoptic practice exam 2 task 1.6

Hi,

The Invoice was dated 13/2/x8 relating to rental for the period 1/11/x7 - 31/1/18 therefore we need to create a provision (accrual) in the accounts Year Ending 31/12/x7.

We need to accrue for 2 months (1/11/X7 - 31/12/X7) the provision is: 2/3 42,000 = 28,000:

Dr Rent 28,000
Cr Accruals 28,000

The revised loss would then be £ (213,588)