(a)[15]
Prepare the income statement for the year ended 31 January 2022. Use the answer space on page 4 for your workings.
(b)[2]
Prepare the rent receivable account for the year ended 31 January 2022.
(c)[2]
Prepare a journal entry to record the adjustment to the provision for doubtful debts account at 31 January 2022. You do not need to include a narrative.
(d)[2]
Explain why depreciation is recorded in a business’s income statement.
(e(i))[1]
State one advantage of using the straight-line method of depreciation.
(e(ii))[1]
State one advantage of using the reducing balance method of depreciation.
(f)[7]
Advise Khin which option he ought to choose. Support your advice by discussing both options.