O-LevelAccountingAccounting procedures7707/11 · May/June 2017 · Q91 Mark
Liam rents premises from Gavin. In March Liam paid the rent in advance for April and May. How would the balance on 1 April appear in their ledgers? Liam's ledger rent payable account Gavin's ledger rent receivable account A as a credit balance as a credit balance B as a credit balance as a debit balance C as a debit balance as a credit balance D as a debit balance as a debit balance
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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