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Accruals and prepayments

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Accruals and prepayments

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • April 21, 2020 at 3:13 pm #568895
    pinkyjovin123
    Participant
    • Topics: 92
    • Replies: 134
    • ☆☆☆

    Hello sir,

    Brighton has received telephone bills as follows

    Quarter to 30/11/10. Dec received Dec 00,
    Amount of bill 739.20,date paid jan 11.

    Quarter to 28/02/111.Dec received March 2011
    Amount of bill 798 ,date paid april 11.

    Quarter to 31/05/11 ,Dec received June 2011
    Amount of bill 898.80,date paid jun 11.

    Quarter to 31/08/2011.Dec received sept 2011,
    Amount of bill 814.80,date paid Oct 11

    Quarter to 30/11/11. Dec received Dec 11,
    Amount of bill 840 ,date paid jan 12

    Quarter to 28/02/12.Dec received March 12,
    Amount of bill 866,date paid March 12

    What is the charge for telephone in the statement of profit or loss for the year ended 31 December 2011?

    Answer is 3374.27

    Could you please help me with this solution.

    April 21, 2020 at 4:01 pm #568901
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    Please look at my answers to your other two questions and follow the same approach.

    Have you watched my free lectures on accrual and prepayments?

    April 21, 2020 at 9:51 pm #568918
    pinkyjovin123
    Participant
    • Topics: 92
    • Replies: 134
    • ☆☆☆

    Hello sir

    But what is 2/3 *798 and 1/3 *866

    Many thanks

    April 22, 2020 at 10:12 am #568938
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    798 is the bill for 3 months (Dec, Jan, and Feb).

    Only Jan and Feb are during the year to 31 December, which is 2 months.

    Therefore the expense for Jan and Feb is 2/3 x 798.

  • Author
    Posts
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