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Hi Sir
on 1 May 2012, Jones paid the rent bill of $1800 for the period to 30 June 2011.
What’s the entry for the profit of loss and the entry in the financial statement for the ended 30 November 2010?
Im ok with numbers, but I don’t understand why the rent from 2010 to 2011 is paid in 2012. And I got accrual but the answer is prepayment. I don’t understand as he’s paid after.
And for the amount of the acquisition of non current asset (statement of cash flow) I got $60200 but it isn’t the answer. opentuition CBE
I don’t know why it is paid in 2012 – they are just very late paying 🙂
The answer should be accrual (not prepayment) – sorry. I have now corrected the error.With regard to the non-current asset, there has been a revaluation of 8,000 (a revaluation reserve has appeared on the Statement of financial position) and so the cost of the acquisition is 60,200 – 8,000 = 52,200
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