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Hi, I have a doubt in the below question from kaplan text:
The electricity account for the year ended 30 April 2005 was as follows:
Electricity accrued at 1 May 2004: 250
Payments made during the year in relation to:
Quarter ending 30 June 2004 : 400
Quarter ending 30 September 2004 : 350
Quarter ending 31 December 2004 : 425
Quarter ending 31 March 2005 : 450Which of the following is the appropriate entry for electricity?
Accrued at 30 April 2005 / Charge to statement of P/L for yr end 30 April 2005
1) $nil / $1375
2) $150 / $1525
3) $300 / $1675
4) $450 / $1825The answer is 2 and below is the solution:
T account of electricityDr
cash 400
cash 350
cash 425
cash 450
“Bal cf 150??
——
1775
——Cr
Bal bf 250P/L(balancing figure) 1525
—-
1775
—-I cant understand how is that 150 figure calculated?
Cheers
AshWhy have you asked exactly the same question 4 times?
Please do not do this again 🙂
(It won’t get you an answer any faster – we answer questions within 24 hours, but we cannot sit permanently at the computer 🙂 )
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