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At 1 September, the motor expenses account showed 4 months’ insurance prepaid of $80
and fuel costs accrued of $95. During September, the outstanding fuel bill was paid, plus
further bills of $245. At 30 September, there was a further outstanding fuel bill of $120.
What was the expense included in the statement of profit or loss for motor expenses for
How to solve this type of question easy way?
There is no special easy way.
It is simply working out the cost of each for September.
Insurance is 1/4 x $80
Fuel is $245 + $120.
Have you watched my free lectures on accruals and prepayments?
No i haven’t
I suggest that you do 🙂