O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2021 · Q151 Mark

At the end of the financial year Mui had prepaid rent of $1500. How should she record this?

Acredit $1500 in the rent account and carry down as a credit balance

Bcredit $1500 in the rent account and carry down as a debit balance

Cdebit $1500 in the rent account and carry down as a credit balance

Ddebit $1500 in the rent account and carry down as a debit balance

✓ Correct answer

B: credit $1500 in the rent account and carry down as a debit balance

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 15.

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