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Hello Sir, can you please solve this question for me.
Leddley owns two properties which it rents to tenants. In the year ended 31 December 20X6, it received $280,000 in respect of property 1 and $160,000 in respect of property 2. Balances on the accrued income and prepaid income accounts were as follows:31 December 20X6 31 December 20X5
Property 1 13,400 Dr. 12,300 Cr.
Property 2 6,700 Cr. 5,400 Dr.What amount should be credited to the statement of profit or loss for the year ended 31 December 20X6 in respect of rental income?
I don’t understand why the 6700Cr and 5400Dr are both debited in the rental income account.
Hi sir! My question is
The annual insurance premium for S for the period 1 July 2003 to 30 June 2004 was $13,200, which is 10% more than the previous year. Insurance premiums are paid on 1 july.
What is the statement of profit or loss charge for insurance for the year ended 31 December 2003?
Sir i understood how 660 comes..13,200 multiply by 6/12 ..but sir previous year it was less.. as mentioned in the answer The premium for the year 1 july 2002 to 30 june 2003 was $13,200 multiply by 1/1.1 =12000
i dont get this how to get 12000..the rest i understand..how 1/1.1?marenah:
The question says that there is a debit balance of 5,400 at the start of the year, therefore we start with a debit balance of 5,400.
We need to end up with a credit balance of 6,700, and since we always carry forward balances from the opposite side (I assume you have watched my free lectures), then we carry it forward from the debit side so as to end up with a credit balance.
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