O-LevelAccountingPreparation of financial statements7707/11 · Oct/Nov 2014 · Q101 Mark

The following account appeared in a trader's ledger. Rent and rates account May 1 balance b/d $1650 31 bank $650 May 1 balance b/d $650 31 income statement $550 balance c/d $1100 Total $2300 for both debit and credit sides. Where did the balance of $1100 appear in the trader's financial statements?

Aincome statement as an expense

Bincome statement as an income

Cstatement of financial position as a current asset

Dstatement of financial position as a current liability

✓ Correct answer

C: statement of financial position as a current asset

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Topic: Preparation of financial statements, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2014 Paper 1 Variant 1, question 10.

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The following account appeared in a trader's ledger. Rent and rates account May 1 balance b/d $1650 31 bank $650 May 1 balance b/d $650 31 income statement $550 balance c/d $1100 Total $2300 for both debit and credit sides. Where did the balance of $1100 appear in the trader's financial statements?

✓ Correct answer

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