[angelaugustine230404]

Thank you very much for the reply.

[angelaugustine230404]

A company receives rent for subletting part of its office block.
Rent, receivable quarterly in advance, is received as follows:
Date of receipt Period covered $
1 October 20X1 3 months to 31 December 20X1 7,500
30 December 20X1 3 months to 31 March 20X2 7,500
4 April 20X2 3 months to 30 June 20X2 9,000
1 July 20X2 3 months to 30 September 20X2 9,000
1 October 20X2 3 months to 31 December 20X2 9,000
What figures, based on these receipts, should appear in the company’s financial statements for the year
ended 30 November 20X2?
•In this question 1 October 2011 to 31 December 2011-7500 count like this($7,500 *1/3)=2,500 what is the reason for the calculation of 1/3 or 2500?

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