• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Accrual and prepayment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Accrual and prepayment

  • This topic has 1 reply, 2 voices, and was last updated 1 month ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 1, 2022 at 2:02 pm #673033
    snehamaharja
    Participant
    • Topics: 9
    • Replies: 3
    • ☆

    Kirsty is preparing her financial statements for the year ended 31 December 2012 and discovers the following:

    1 An electricity invoice dated 9 January 2013 has not been recorded and includes an amount for electricity consumed up to 31 December 2012 for $310

    An employee expense claim dated 31 December for $90

    An invoice for the company’s annual insurance premium of $3,000 for the period 1 December 2012 to 30 November 2013 was received and dated 2 January 2013

    What amount should be included in Kirsty’s statement of financial position at 31 December 2012?

    Sir , in book ans is (650 accrual and prepayment nil)
    I Know , 310 and 90 will be record right and in ans there is 250 ? 310 +90+250 = 650
    Can you explain me how 250 come ??

    December 1, 2022 at 5:51 pm #673068
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    The insurance premium of $3,000 is for the period 1 December 2012 to 30 November 2013 (which is 12 months), and has not yet been paid.

    Our year ends on 31 December 2012 and so they need to accrue for the insurance for the month of December. 1/12 x 3,000 = $250.

    Have you watched my free lectures on accruals and prepayments?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • ksmigulec on Management of Working Capital  – Introduction – ACCA Financial Management (FM)
  • tmatanga2008@gmail.com on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)
  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)
  • palbu on Basic group structures – Impairment – ACCA (SBR) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy