A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2020 · Q91 Mark

Rent is paid by a business monthly in advance on the first day of each month. The payments during a financial year were as follows. up to and including 1 June $500 per month from 1 July $600 per month Which amounts will appear in the financial statements for the year ended 31 October?

Aincome statement $6300, statement of financial position $600 other receivables

Bincome statement $6300, statement of financial position $600 other payables

Cincome statement $6400, statement of financial position –

Dincome statement $6500, statement of financial position –

✓ Correct answer

C: income statement $6400, statement of financial position –

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2020 Paper 1 Variant 2, question 9.

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Rent is paid by a business monthly in advance on the first day of each month. The payments during a financial year were as follows. up to and including 1 June $500 per month from 1 July $600 per month Which amounts will appear in the financial statements for the year ended 31 October?

✓ Correct answer

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