A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2019 · Q91 Mark
A business paid an annual rent of $24000. At 1 January 2018 there was accrued rent of $4000. Rental payments were as follows. $ 1 January 2018 12000 1 July 2018 10000 1 September 2018 13000 How was rent recorded in the financial statements at 31 December 2018?
Aincome statement $24 000, other receivables $7000, other payables nil
Bincome statement $24 000, other receivables nil, other payables $7000
Cincome statement $35000, other receivables $11000, other payables nil
Dincome statement $35000, other receivables nil, other payables $11000
✓ Correct answer
A: income statement $24 000, other receivables $7000, other payables nil
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