O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2014 · Q121 Mark
Liam rents premises from Gavin. In December Liam paid the rent in advance for January and February. How would the balance on 1 January appear in their ledgers?
ALiam's ledger rent payable account: as a credit balance, Gavin's ledger rent receivable account: as a credit balance
BLiam's ledger rent payable account: as a credit balance, Gavin's ledger rent receivable account: as a debit balance
CLiam's ledger rent payable account: as a debit balance, Gavin's ledger rent receivable account: as a credit balance
DLiam's ledger rent payable account: as a debit balance, Gavin's ledger rent receivable account: as a debit balance
✓ Correct answer
C: Liam's ledger rent payable account: as a debit balance, Gavin's ledger rent receivable account: as a credit balance
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