O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2017 · Q111 Mark

Gary rents his business premises. His financial year ends on 30 September. On 1 October 2016 rent prepaid amounted to $3000. During the year ended 30 September 2017 a total of $7000 rent was paid. On 30 September 2017 rent outstanding amounted to $2000. Which journal entry shows the transfer of the rent to the income statement on 30 September 2017?

Adebit income statement $8000, credit rent $8000

Bdebit income statement $12000, credit rent $12000

Cdebit rent $8000, credit income statement $8000

Ddebit rent $12000, credit income statement $12000

✓ Correct answer

B: debit income statement $12000, credit rent $12000

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2017 Paper 1 Variant 1, question 11.

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