Accruals and prepayments

In the first question, the financial year is 1 July 2000 to 30 June 2001. Among the the list of payments, the last payment made this year was on 30 June 2001 (which is also the year end) covering until 30 April 2001 indicating that during this year May and June payments were accrued. They were paid in next year which is indicated by the last payment on the list which was made on 1 August 2001, which falls out the current financial year. So May, June payments 840 x 2/3 = 560 was accrued. For the P&L it will be Payments made during this year 600+720+900+840=3060 plus closing accrual of (from above) minus opening accrual: 3060+560-300=3320

First question: The last payment before the year end was the on 30 June and the total paid up till then was 600 + 720 + 900 + 840 = 3060. However, they have only paid up to 30 April 2001, and so they need to accrue for the 2 months - May and June. This will be 2/3 of the payment made on 1 August, so 2/3 x 840 = 560. Also, there was an accrual of 300 brought forward from last year. So the total expense for this year is 3060 + 560 (owing at the end of this year) - 300 (owing at the start of this year, and paid this year) = 3,320 (Incidentally, get the the habit of doing this sort of question this way Do not use t-accounts - they waste time and there is very little debits and credits in the exam)

Second question: The expense in the SOPOL will be the total of the bills for the year to 30 November: 1300 + 1400 + 2100 + 2000 = 6800. (Although not asked, the total cash paid is 12 x 600 = 7200, and there was 200 overpaid at the end of last year. So the overpayment at the end of this year is 7200 + 200 - 6800 = 600, which will appear as a current asset in the SOFP)

The question has been corrected. The date of the payment should be 1 May 2010. The rest of the question is OK. That means that the correct answer is 1050 in the SOPOL, and a prepayment of 750 in the SOFP.