O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2017 · Q181 Mark
Tareq started a business on 1 October 2016. He provided the following information. On 28 November 2016 he paid an insurance premium, $1800, for the year starting 1 December 2016. On 31 December 2017 he paid advertising costs for 1 July to 31 December 2017 totalling $2400. What was shown in the statement of financial position at 30 September 2017?
Aother receivables: advertising $400, other payables: insurance $300
Bother receivables: advertising $1200, other payables: insurance $300
Cother receivables: insurance $300, other payables: advertising $400
Dother receivables: insurance $300, other payables: advertising $1200
✓ Correct answer
D: other receivables: insurance $300, other payables: advertising $1200
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