O-LevelAccountingAccounting procedures7707/11 · May/June 2015 · Q91 Mark

On 1 January 2014 a trader owed one month's rent. During the year rent was paid by a cheque. On 31 December 2014 two month's rent was prepaid. How did the trader calculate the rent for the year ended 31 December 2014?

Aamount paid + opening accrual + closing prepayment

Bamount paid + opening accrual – closing prepayment

Camount paid – opening accrual + closing prepayment

Damount paid – opening accrual – closing prepayment

✓ Correct answer

D: amount paid – opening accrual – closing prepayment

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2015 Paper 1 Variant 1, question 9.

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