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at 31st Dec 2002 the following require inclusion in a company’s financial statements:
1) in Jan 2003 the company received rent from a tenant $4000 covering the six months to 31st of Dec 2002
what figures are to be included in the statement of financial position at 31st Dec 2002?
the answer consists of two figures one for receivables and prepayments and one for payables and accruals.
the payables and accruals is NIL.
im not sure why as surely as the amount wasn’t received until the following year it was an accrual in 2002?
Accruals are when you owe money.
Here, at 31 December the tenant owed money to us – we didn’t owe him anything!
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