[aceveteran]

Pardon me about that sir.

Okay, I’ve seen the videos. However, I don’t know why the question seems difficult to me. The answer in the revision kit sites two accounts: Gas account and Gas supplier account.

I understand the entries for the Gas account for M Inc. Cash/Payable is CR with the quarterly payments and a DR entry in the Gas account. The balance is transferred to P/L account which is the answer to the question.

But I don’t fully understand the entries in the Gas supplier account. I understand the CR entries ( Gas supplier Dr Cash/Recievables and CR its account with the income). But I don’t understand why the standing order charge of 600 per month and the prepaid income of 200 is a Dr entry in the supplier account.

Thank you

[aceveteran]

Scored 61%, all thanks to Opentuition lectures

[aceveteran]

Thank you John.

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