Hello sir,
Charles indigo rents premises at an annual rate of $1000.The rates payable for the accounting year 1 July 2006-30 June 2007,his first year of business were $360.Cheques for rent and rates were paid as follows.
20x6
July 20x8 Rates for 9 months to 31 March 20x7
220
Sept 2008
Rent for three months to 30 September 20x6
250
20x7
Jan 3 Rent for three months to 31 December 20x6
250
March 28 Rent for three months to 31 March20x7
250
April 30 Rates for six months to 30 September 20x7
280
What rent and rates expense should be included in the cos statement that of profit or loss for the year ended 30 June 20x7 ?
Answer is 1360
Could you please help me to find the solution?
Many thanks
Ask the Tutor ACCA FA
F3 doubt
6y ago#1The rent is $1,000 per year (from the question).
The question also says that the rates for the year ended 30 June 2007 are $360.
Therefore the total expense is 1,000 + 360 = $1,360. When payments ere actually made is of no relevance.
Sign into reply to this topic.