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John Moffat.
John Moffat.- Posts
pinkyjovin123Hello 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.
20×6
July 20×8 Rates for 9 months to 31 March 20×7
220Sept 2008
Rent for three months to 30 September 20×6
25020×7
Jan 3 Rent for three months to 31 December 20×6
250
March 28 Rent for three months to 31 March20x7
250
April 30 Rates for six months to 30 September 20×7
280What rent and rates expense should be included in the cos statement that of profit or loss for the year ended 30 June 20×7 ?
Answer is 1360
Could you please help me to find the solution?
Many thanks
John MoffatThe 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.
pinkyjovin123
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