A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2009 · Q11 Mark
The accounting year end of a business is 31 October. On 1 April the business rents out part of its warehouse for an annual rent of $6000. Payments were received in equal instalments on 1 April, 1 July, 1 October and 1 January. At 31 October what would the final accounts show?
Arental income 3500 current asset 1000
Brental income 3500 current liability 1000
Crental income 4500 current liability 1000
Drental income 6000 current asset 1500
✓ Correct answer
B: rental income 3500 current liability 1000
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