Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The rent and rates expense shown in the income statement for the year ended 31 December 2021 was $76230. The following additional information was available. Rent accrued: balance brought forward 1 January 2021 $4000; balance carried forward 31 December 2021 $6500. Rates prepaid: balance brought forward 1 January 2021 $770; balance carried forward 31 December 2021 $820. How much was paid from the bank account for rent and rates during the year ended 31 December 2021?

  • A$73680
  • B$73780
  • C$78680
  • D$78780

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