F3 doubt

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
April 21, 2020 at 10:21 am #568868
pinkyjovin123
Participant
- Topics: 92
- Replies: 134
Hello sir,
Charles indigo rents premises at an annual rate of $1000.The rates payable for the accounting year 1 July 2006-30 June 2007,his first year of business were $360.Cheques for rent and rates were paid as follows.
20×6
July 20×8 Rates for 9 months to 31 March 20×7
220
Sept 2008
Rent for three months to 30 September 20×6
250
20×7
Jan 3 Rent for three months to 31 December 20×6
250
March 28 Rent for three months to 31 March20x7
250
April 30 Rates for six months to 30 September 20×7
280
What rent and rates expense should be included in the cos statement that of profit or loss for the year ended 30 June 20×7 ?
Answer is 1360
Could you please help me to find the solution?
Many thanks
April 21, 2020 at 3:36 pm #568896
John Moffat
Keymaster
- Topics: 57
- Replies: 54836
The rent is $1,000 per year (from the question).
The question also says that the rates for the year ended 30 June 2007 are $360.
Therefore the total expense is 1,000 + 360 = $1,360. When payments ere actually made is of no relevance.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.