Anonymous
Anonymous asked in 教育及參考書其他 - 教育 · 7 years ago

Accrual prepayment question

A firm records all transactions relating to the expense for both rent and rates in a single ledger account.

At the start of the year there was an accrual in respect of rent of £2,500 and a prepayment in respect of rates of £3,000. At the end of the year, there was rent due of £4,500 and rates prepaid of £3,500. The total expense for both rent and rates for the year was £36,000.

The total amount paid during the year, in respect of both rent and rates, was:

A) £36,500 B) £37,500 C) £34,500 D) £35,500

The answer is C

The fomula

$36000+($3500-$3000)-($4500-$2500)=$36000+$500-$2000=$34500

$36000-$2500+$4500-$3500=$34500

Why?

What is the meaning ?

How to tackle it???????

2 Answers

Rating
  • Anonymous
    7 years ago
    Favorite Answer

    Accrual/Prepayment

    The reasoning is in bold type and underlined below.

    A firm records all transactions relating to the expense for both rent and rates in a single ledger account.

    At the start of the year there was an accrual in respect of rent of £2,500-this amount is rent paid this year for last year, add this to the total expense for this year as part of the total amount paid during this year and a prepayment in respect of rates of £3,000-this is rates paid last year for this year, subtract this from the total expense for this year as it is not part of the total amount paid during this year . At the end of the year, there was rent due of £4,500-this amount is rent for this year not yet paid, subtract this from the total expense for this year as it is not part of the total amount paid during this year and rates prepaid of £3,500-this is rates paid this year for next year , add this to the total expense for this year as part of the total amount paid during this year. The total expense for both rent and rates for the year was £36,000.

    Therefore, the total amount paid during the year, in respect of both rent and rates, was:

    £36,000(The total expense for both rent and rates for the year)

    +£2,500(Rent *paid this year for last year)

    -£3,000(Rate paid last year (*not paid this year) for this year)

    -£4,500(Rent for this year *not yet paid this year)

    +£3,500(Rate *paid this year for next year)

    =£34,500, which is answer C.

    (*The idea is to add the rent or rate that is paid this year, and to substract the rent or rate that is not paid this year.)

  • 7 years ago

    意I思A 的分析的正確的。

    這類是 account 或 LCCI Level I 的程度吧~

    對我來說已經是很多年前的年了~

    我覺得你第二個formula

    $36000-$2500+$4500-$3500 有些奇怪。

    重點是 accounting 入數要計應當是該財政年度的數,不是實質收或付的錢。

    這就是 accrual principle。

    這題則反問你實質付出的錢。

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