- This topic has 4 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
The yr end of M inc is 30 nov 2010.the company pays for its gas by a standing order of $600 per month.on 1 dec 2009,the statement from the gas suplier showed that M inc had overpaid by $200.M inc received gas bill for the four querters commencing on 1 dec ’09 and ending on 30 nov ’10 for $1300;$1400;$2100 and $2000 respectively.
charge for gas in M inc’s SOPL for the year ended 30 nov 2010?
ans:$6800my ans was $7000.
my thinking was we have an opening prepayment of $200.
plz explain moffat sir!The actual expense for the year is the total of the 4 bills, which is 6800.
The was indeed an opening prepayment of 200, and during the year they will have paid cash of 12 x 600 = 7200. So a total of 7400 which means that at the end of the year there is a prepayment of 7200 – 6800 = 400.
The expense is the cost of the gas actually used during the year, which is the total of the 4 bills.
- You must be logged in to reply to this topic.