O-LevelAccountingAccounting procedures7707/11 · May/June 2012 · Q141 Mark
Gary's financial year ends on 31 March. On 1 April 2011 rent prepaid amounted to $3000. During the year ended 31 March 2012 a total of $7000 rent was paid. On 31 March 2012 rent outstanding amounted to $2000. Which journal entry shows the transfer of the rent to the income statement on 31 March 2012?
Adebit $: income statement 8 000, credit $: rent 8 000
Bdebit $: income statement 12 000, credit $: rent 12 000
Cdebit $: rent 8 000, credit $: income statement 8 000
Ddebit $: rent 12 000, credit $: income statement 12 000
✓ Correct answer
B: debit $: income statement 12 000, credit $: rent 12 000
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