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.
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Accruals and prepayments
6y ago#1Please look at my answers to your other two questions and follow the same approach.
Have you watched my free lectures on accrual and prepayments?
Hello sir
But what is 2/3 *798 and 1/3 *866
Many thanks
6y ago#3798 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.
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