A-LevelAccountingAccruals and PrepaymentsOct/Nov 2009Paper 1 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?

Q: What topic does this question test?

This question tests Accruals and Prepayments in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

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

The correct answer is B: rental income 3500 current liability 1000

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Accruals and Prepayments in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2009 examination, Paper 1 Variant 2.

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